The deal includes an earn-out of up to £4.8m over two years, based on agreed profit growth targets. This acquisition strengthens Macfarlane’s protective packaging business, aligning with its strategy of combining organic and acquisitive growth.

Polyformes, founded in 1977, specialises in designing and converting foam for specialist protective packaging, serving customers across the aerospace, medical, defence, and industrial sectors. The company has a team of 60 employees based in Leighton Buzzard, including three directors who will remain with the group.

For the year ended 31 December 2023, Polyformes generated sales of £9.3m, with EBITDA of £1.5m and pre-tax profits of £1.4m.

The deal to acquire Polyformes is being financed entirely from Macfarlane’s existing bank facility of £35 million.

Peter Atkinson, chief executive of Macfarlane, said: “Polyformes is a profitable, growing, well invested company with an experienced management team that is fully committed to the business.

“We look forward to working with the team at Polyformes to support its continued growth and develop opportunities for us to work together to provide our customers with a broader portfolio of protective packaging solutions.”