Plastic packaging firm Lendlock Group has launched a multimillion pound expansion with the purchase of a Yorkshire rival.

Chester-based Lendlock has bought the Nekem Partnership of Hull for an undisclosed sum.

The group, which supplies the cosmetic, pharmaceutical and toiletries industries, has expanded after a number of mergers and acquisitions.

It had a turnover of pounds 13.4m in the year to July 31, 2007, according to figures reported at Companies House.

Hull-based Nekem was founded in 1963 and supplies bespoke and generic packaging to the pharmaceutical, healthcare and cosmetic markets. It specialises in glass containers, and its customer base includes a number of blue-chip companies and leading high street names.

Lendlock chairman Mike Duffell said: "This deal will significantly expand our operations in the packaging market and is a natural fit with the Lendlock Group. The acquisition of the Nekem Partnership is part of our ongoing strategic plans and will secure a strong future for the ongoing business of the group."

Lendlock will now employ over 250 people at sites in Bootle, Chester, Burnley, Dorset and Hull.

The deal was funded by Alliance & Leicester Commercial Bank's Merseyside Business Centre.

Senior relationship manager Paul Norman said: "Lendlock's latest acquisition will significantly expand their operations in this lucrative sector. The company has an experienced, knowledgeable management team at the helm and with a strong client base in the UK and in China, it has a great future ahead."

Hilene Henry of chartered accountants The Wilson Henry Partnership acted for Lendlock while Mark Grenville and Andy O'Mahony of solicitors Brabners Chaffe Street, along with Jason Hiley of PKF Accountants, acted for the bank.