National packaging and label business Macfarlane Group Plc has announced the acquisition of GWP Holdings Limited, the owner of GWP Group Limited, a protective packaging manufacturing and distribution firm based in Wiltshire.

With a site at Waterwells Business Park in Gloucester, Macfarlane said the purchase forms part of its strategy to build its protective packaging business through a combination of organic and acquisitive growth.

GWP supplies customers across the UK but mainly within the South West from its manufacturing facilities in Salisbury and Swindon. Macfarlane said there are significant opportunities for both GWP and their own business to benefit from access to their respective ranges of protective packaging products and services.

GWP has an experienced team of 107 employees, including its six directors. Five of the directors will remain with the company following its acquisition.

Macfarlane's wholly-owned subsidiary, Macfarlane Group UK Limited, acquired 100 per cent of GWP for a maximum cash consideration of £15.1 million.

Peter Atkinson, chief executive of Macfarlane, said: "GWP is a profitable, growing, well invested company with an experienced management team that is fully committed to the business going forward. The acquisition will be funded using bank debt and will be earnings enhancing."

For the year ended 30 September 2020, GWP generated sales of £13.2 million, EBITDA of £2.1 million and pre-tax profits of £1.6 million.

He added: "We look forward to working with the team at GWP to support its continued growth and develop opportunities for us to work together to provide all our customers with a broader portfolio of value-add and sustainable protective packaging solutions. "