Glasgow-based packaging firm Macfarlane Group said it conditionally agreed to acquire the packaging business and selected assets of Nottingham-based Greenwoods Stock Boxes Limited and 100% of its sister company Nottingham Recycling Limited — together to be called Greenwoods — for up to £16.75 million.

The deal was announced in conjunction with a placing of shares to raise £8 million.

The acquisition is expected to be earnings enhancing in the first full year of ownership.

Macfarlane CEO Peter Atkinson said: “This acquisition is another major step forward in our growth strategy.

“Greenwoods is a long established, high quality business which has successfully developed into attractive markets with good growth potential.

“We see significant benefits in Greenwoods becoming part of the Macfarlane Group and look forward to their continued success.”