Packaging manufacturer Glossop Cartons has almost doubled the size of its business by acquiring Stockport-based Contact Print and Packaging for an undisclosed sum.
The deal, which was officially completed on 23 November, will see Glossop Cartons move from its current site in Padfield, Derbyshire to Contact Print’s facility in Stockport, Cheshire.
Rebranding of Contact Print’s site will be completed, and Glossop Cartons’ staff and machinery will be moved over, by the end of the year.
Glossop Cartons said the acquisition will enable it to benefit from larger and better laid out 5,574sqm premises, which comprise three purpose-built production and warehouse units, and equip it with improved transport links.
The firm said the move will allow it to "fully exploit" both its conventional and digital packaging capabilities to UK and global brands, and further enhance its reputation in the industry.
Glossop Cartons sales director Jacky Sidebottom-Every said: “Phil Smith [Contact Print group chairman] and my family go back to the 1970s and we’ve always been friendly and had an affinity with each other.”
“We started to talk about common ground at around Easter this year and negotiated through the summer.”
She added: “Contact Print’s reputation as a leading specialist in packaging is unrivalled, and its new state-of-the-art production facilities are well recognised by its clients within the food, pharmaceutical, beverage and gifting sectors.
“The move will allow Glossop to significantly enhance our digital suite and ensure that we’re in a stronger position to offer unique products and unparalleled production capabilities.”
Contact Print has BRC and Pharmaceutical accreditation along with ISO 9001 while Glossop Cartons has ISO 9001, 14001 and 18001.
Sidebottom-Every said the companies together would have the required standards to produce packaging for all sectors with confidence.
The company has not yet decided what to do with its existing Padfield site, which it owns.
“We will probably keep it on as warehousing to begin with and then see what happens and look at what is going on locally,” said Sidebottom-Every.
All of Contact Print’s 54 staff will be retained, with the management remaining in similar roles, while all of Glossop Cartons’ staff will relocate, if agreeable, and remain with the company.
“The majority of our staff are very positive about the move. Some people are apprehensive about change but I think everybody sees it as an acquisition for the good, which strengthens Glossop’s position in the market going forwards,” said Sidebottom-Every.
Combined the company will now have 110 staff and a turnover of more than £10.2m, just over £5m of which comes from Contact Print.
The deal was backed by Lloyds Bank Commercial Banking, which provided a loan to support the purchase of Contact Print’s premises.
The bank’s Commercial Finance team also provided an asset finance facility to enable Glossop Cartons to purchase the printing and finishing machinery used at the site, which includes conventional presses, cutters and gluers.
“We feel that the company is now in a strong position to take both conventional and digital packaging to the next level and we’re very excited to see what the future holds,” said Sidebottom-Every.