The Glasgow firm has purchased Lancashire-based packaging distributor Leyland Packaging Company in a bolt-on deal worth close to £3.3 million.
Leyland, which focuses on industrial customers in the north-west of England, generated sales of £4.1 million and pre-tax profits of £550,000 in 2018.
The agreement marks Macfarlane's second acquisition this year, following on from its buy-out of Ecopac which concluded at the start of May, as it presses ahead with its acquisitive growth strategy.
The latest deal will see Macfarlane pay an initial consideration of £2.3m, comprising £2m in cash and the remainder in shares.
It will also pay up to a further £1m in cash at the end of next year depending on earnings targets being met for the 12 months to August 2020.
Leyland employs 12 staff who will remain in the business following the acquisition.
Chief executive Peter Atkinson said: “Leyland is a high-quality protective packaging business that meets our acquisition criteria and will be earnings-enhancing in its first full year in the group.
"I am confident that the business will be another good acquisition for Macfarlane improving our geographic coverage in the north-west of England and extending our customer reach.”
Macfarlane, which is celebrating its 70th anniversary this year, last month unveiled turnover rose by 5.4 per cent to just over £107.5m in the six months to the end of June.
Profit before tax was up 8.7 per cent to £3.8m.