Insider Media Limited

Paper sack manufacturer DS Smith Sacks has been taken over in a management buyout. The Horncastle-based company has also changed its name to Forum Packaging.

The deal, brokered by Lincoln business Queensgate Management, is said to secure the jobs of 83 workers at its Mareham Road site.

DS Smith Sacks, a division of DS Smith, has been acquired by its managing director and finance director.

The new management team of Mark Spivey and Rob Massey said all jobs at the company are safe and they have already taken on an extra four employees in response to a "growing order book".

"This is a great acquisition for everyone involved," said Jeremy Wetherall of Queensgate Management.

"The business is profitable but it wasn't part of DS Smith's core strategic vision and with new investment Forum Packaging will be able to move forward with confidence."

Spivey, the managing director, said he is looking forward to a period of expansion and growth for Forum Packaging.

He added: "It's business as usual as far as our employees are concerned but we’ll be looking at other acquisitions too and aiming to grow into other market sectors where we can.

"We have a long-term vision for the business. We both live close by and the main reason for buying it was to secure the future of the site in Horncastle.

"We're very happy with the existing team and we’ve got a lot of experience here to drive the business forward; the people within the business were one of the main reasons why we bought it."

Forum Packaging makes paper sacks and bags for the food, animal feed, chemicals and cement sectors. About £500,000 has already been invested in a new roof for the factory.