Glasgow-based packaging firm Macfarlane Group said it acquired Colton Packaging Teesside as part of its strategy “to develop its packaging distribution business in the UK protective packaging market.”

Colton Packaging Teesside is the North East branch of Colton Packaging Limited, an established regional distributor of protective packaging materials based in Leicester.

In 2015, Colton Packaging Teesside generated sales of £3 million.

Macfarlane said it will pay up to £1.25 million for Colton Packaging Teesside “assuming key financial objectives are achieved in the 12-month period post-acquisition.”

Peter Atkinson, chief executive of Macfarlane Group, said: “Colton Packaging Teesside is a high quality business with a good team of people who will complement the Macfarlane Packaging Distribution business based in Newcastle and strengthen Macfarlane’s presence in the North East of England.”

In February, Macfarlane Group said its sales rose 10% in 2015 to £169.1 million and profit before tax soared 21% to £6.8 million as recent acquisitions and success in the expanding internet retail sector both helped the company’s bottom line.

Macfarlane said in February it would continue looking for good companies to buy.