Macfarlane Group has returned to the acquisition trail with a deal to buy a Nottinghamshire based distributor for up to £2.75million.

One Packaging, established 12 years ago by Greg Almond, now 60, made an underlying profit of £400,000 on turnover of £4.9m in the year to July 2014, and the deal is based on net assets at completion of £200,000.

Macfarlane will fund an initial £2m from its borrowing facilities, with the balance payable in the third quarter of 2016 subject to trading targets being met in the next 12 months. Half of the deferred £750,000 will be paid in ordinary Macfarlane shares, and it reflects One’s business plan to improve both turnover and operating profits by 25 per cent by the end of the earn-out period.

Peter Atkinson, Macfarlane’s chief executive, commented: “This acquisition demonstrates our continuing commitment to the strategy of developing our leadership position in the UK market for the distribution of protective packaging.”

He added: “We are delighted that Greg Almond will remain with the business. His considerable knowledge and expertise will complement the existing Macfarlane business in the East Midlands area.”

Macfarlane had put its programme on hold until last year when it bought Lane Packaging and Network Packaging. It has a £20m facility with Lloyds for reducing its pension deficit and funding acquisitions.

In May Macfarlane said sales in its packaging distribution arm were up by 16 per cent on the first four months of 2014.