Glasgow-based packaging firm Macfarlane Group said it agreed to buy Leicester-based Nelsons for Cartons and Packaging Limited for up to £6.75 million.

The deal is backed by a placing of shares by Macfarlane to raise about £5.8 million.

Macfarlane chief executive Peter Atkinson said: “The addition of Nelsons Packaging to the Macfarlane Group is another significant step forward in our growth strategy.

“Nelsons is a high quality business and in addition to improving the Macfarlane presence in the East Midlands, the Nelson team bring specific expertise in corrugate packaging applications which will be of wider benefit to Macfarlane.”