The deal was completed on 31 December and includes Macfarlane Labels, Macfarlane Group Ireland (Labels & Packaging), and Macfarlane Group Sweden.
The UK operation is located in Kilmarnock, Scotland.
The business employs 109, who remain with the operation. It produces self-adhesive labels for FMCG clients, including resealable labels through its Reseal-it brand.
Macfarlane Labels made a pre-tax profit of £300,000 last year, or £600,000 if group interest and management charges are added back.
It was part of Macfarlane’s £28.5m-turnover Manufacturing Operations business, which also includes packaging design and manufacturing.
Macfarlane said the proceeds from the sale would be invested in its protective packaging businesses.
CEO Peter Atkinson said that while the labels operation had been a longstanding part of the PLC, “we believe that its sale to Reflex, with their well-established position and scale in the labels market, creates the best opportunity for Macfarlane Labels to develop.
“The sale will allow the group to focus resources on growing our protective packaging businesses both in the UK and Europe,” he added.
Reflex Group celebrates 20 years in business this year. The group posted sales up 8% at £123m in the financial year to 28 February 2021, with “especially strong” growth at its labels business. The group has 19 locations in the UK producing labels and flexible packaging. It employs around 800 staff. Part of its expansion has been built on a raft of strategic acquisitions.
Macfarlane’s share price rose by more than 3% to 134p on the news (52-week high: 146p, low: 82.2p).
