CCS McLays, a UK-based provider of consumables, packaging and catering supplies for household brands, announces the successful acquisition of a controlling interest in the leading UK-based manufacturer of paper bags and products, Dempson, based in Maidstone, Kent.
This latest acquisition marks a significant milestone in CCS McLays’ ambitious growth strategy, creating a powerful combination of end-to-end consumables provision and strengthened presence in the food and retail packaging sectors. CCS McLays aims to double the capacity and sales at Dempson whilst taking the overall CCS McLays group from turnover of ~£100m to £150m within three years.
Dempson, founded in 1948, has grown to become one of the UK’s largest and most innovative bag manufacturers, with one of the widest product ranges in the carrier bag industry. Both companies are already collaborating successfully, with Dempson remaining autonomous within the CCS Group. Dempson’s Managing Director, Jon Katzauer, will carry on in his role ( as a shareholder) to oversee the Dempson operation. The members of the Dempson team will remain in their positions, ensuring continued seamless customer service as the integration takes place. The company has plans to increase resources to support its growing customer base, investing in new machines and hiring additional highly skilled operatives.
The combined £94 million revenue CCS McLays business, led by Founder and CEO, Ian Hall, will employ ~230 people and support over 300 customers. While Dempson will remain autonomous within the CCS Group, it will act as an accelerator for CCS as a packaging consolidator. Dempson is the second business to become part of the CCS McLays family in its 20-year trading history (TPSG Procurement in 2024 being the first) and its multi-skilled teams will enable the company to seize new market opportunities which are driven by a rapidly increasing global demand for innovative packaging solutions.
A trump card to Dempson‘s core capabilities is the company’s alignment with CCS McLays’ standards in client delivery and shipping connections. The 75-plus year old business’ Kent-based factory will enable CCS McLays to accelerate direct delivery to markets such as the US. Dempson’s skilled machinery operatives will ensure the high standard of manufacturing, which is expected by customers worldwide, to time and budget. CCS McLays’ acquisition process was supported by leading independent advisory firm, Quantuma, and by the UK’s leading legal adviser for M&A transactions, HCR Law, navigating the legal process.
Ian Hall, CEO at CCS McLays said: "This key step in our acquisition plan enables us to significantly step up the manufacture and supply for our customers’ and future customers’ UK, European and global consumables needs. It allows us to broaden our product offering and work more closely with clients on tailored, cost-effective solutions delivered at scale.
“It’s rare to find a packaging manufacturer that meets the same high standards as we hold ourselves to. Dempson stood out, not only for its AA+ BRCGS (Brand Reputation Compliance Global Standards) accreditation and longstanding industry expertise, but also for its proven ability to deliver at scale. Crucially, the Dempson team shares our deep commitment to sustainability – a shared vision that strengthens our position as a responsible partner to the retail and hospitality sectors. I see strong mutual benefit in the way our cultures align on core values while bringing different perspectives and I am excited about this next stage in the CCS McLays’ company story.”
Jon Katzauer, Managing Director at Dempson, said: "We’re delighted to join the CCS McLays team to blend our expertise in paper-based manufacturing with CCS McLays’ scale and maturity in goods not for resale. This deal will benefit the customers of both CCS McLays and Dempson as it will enable CCS McLays to deliver end-to-end solutions combining our manufacturing expertise with CCS McLays’ best practices and will offer opportunities to supply faster and on a bigger scale.
“Integrating with CCS McLays enables us to stay true to our specialist focus and existing customers while accelerating the design and delivery of innovative, client-focused solutions. Ultimately, we will be able to deliver custom packaging provisions faster, more efficiently and at greater scale."
Sean Bucknall, Managing Director at Quantuma concluded: "This acquisition is set to enhance the impressive organic growth of the CCS McLays business under Ian Hall’s leadership and looks set to create a global powerhouse in the goods not for resale market.
“We’re excited to see Dempson’s packaging innovation capabilities and sustainability credentials act as a catalyst for business growth, and we are ready to support CCS McLays with further strategic acquisitions in the coming years."