UK-based Culina Group has acquired specialist food contract packing business IPS Contracting for an undisclosed value.
As part of the deal, Culina has acquired IPS operations at Featherstone and York that employ around 500 people.
Culina Group chief executive Thomas van Mourik said previously both the companies have developed strong links through joint venture, based at various company's sites.
"This significantly expands our contract packing operation and will enable us to drive through synergies and efficiencies that will benefit all our existing customers and allow us to offer an even better service," Mourik added.
Independent co-packer IPS provides packing and manufacturing solutions, and its core business include flow-wrapping, filling, bagging, cartoning and merchandising units.