AN East Lancashire packaging firm has been bought for more than £10million after three years of 'long and hard' negotiations with a London-based holding company.

The directors of Haslingden firm Flexipol Packaging Ltd, which supplies manufacturers such as Marks and Spencer, have struck the deal with Plastics Capital, a niche plastics products group, for £10.64million.

The company, based in Bentwood Road, currently employs 100 staff and generated nearly £15million in sales last year.

It makes packaging products such as film and bags, supplying food processors and manufacturers.

Ian Smith, one of Flexipol's three founding shareholders, said the company's factory needs to expand, and this investment is the best way to do it.

He said: "We've found the best people to go into partnership with to make that happen, but we've had three years of long, hard negotiations to get here.

"I think all three directors are very happy it's finally happened.

"It's not a decision we've taken lightly, because our workforce is very important to us, but we've made the right decision.

"Our product range is patented and protected, and very profitable, but we need investment to move it forward quickly.

"We're looking to put more capacity into the plant and spend a lot more on new product development.

"Hypothetically, more capacity will also mean us needing more staff."

Plastics Capital said Flexipol was in a growing market place, citing a recent report which said the UK food and grocery sector would grow in value by 21 percent by 2018.

Faisal Rahmatallah, Chairman and CEO of Plastics Capital, said: “Flexipol is very clearly a business that meets our acquisition criteria - specialty products, high recurring revenues with loyal customers, limited competition and healthy financial performance."