Macfarlanes 21.7m acquisition of National Packaging Group this week has confirmed the groups strategy of focusing on distribution rather than manufacturing.


According to Macfarlane group finance director John Love, the deal means the enlarged group will control around 12% of the UK packaging materials distribution market.


"In packaging we are moving away from manufacturing and towards logistics and distribution," said Love.


The move is part of the Glasgow-based groups goal to be a "one-stop shop" for packaging products, added Love.


NPG the packaging distribution division of Charles Baynes has an annual turnover of more than 48m, a network of 17 branches and a central distribution centre in Coventry. The company, which distributes packaging materials and automated packaging equipment, employs 240 people. By combining the two businesses, Love expects to achieve lower distribution costs.


Following the disappointment of the groups failed 114m bid for polythene firm BPI last year, Macfarlanes management team is concentrating on small, bolt-on acquisitions.


"Theres plenty on the go but we are at the early stages of talks," said Love.


Chief executive Iain Duffin said the combination of Macfarlane and NPG would be a "truly powerful" one.


David S Smith has bought Derbyshire-based Smurfit Decoprints litho-laminated corrugated business.


European plastic and paperboard packaging firm David S Smith believes customers will benefit from a wider product range.


"This takes us into larger sheet sizes and into polyesters," said David S Smith packaging director Terry Ousley. Decoprint will become part of David S Smith Packagings speciality business.


Story by Sally Nash