The £75m turnover group has gained a £10m investment – the maximum possible via the BGF – to fund growth at the business. The BGF will take a minority stake in the company.

Chief executive Chris Ingram described the investment as "very good news for the company and the printing industry".

He told PrintWeek: "It’s easy for people to think the printing industry is in decline. The reality is, if you’re focused on very specific markets it’s actually quite the reverse.

"This is very good new for the printing industry, when you’ve got financial institutions taking our sector seriously and realising there are opportunities going forward."

Richard Taylor, senior investment manager at the BGF, praised the York Mailing team for building a profitable and growing business by targeting a niche area. "It’s a great example of a proven and dynamic management team with a clear plan to grow their business."

York Mailing will use the money to support acquisitions and further capex investment. "We have specific plans for the future and we are looking at one or two acquisitions," Ingram said, although he declined to go into details about potential targets.

The group has established a market-leading position in print for the retail sector including flyers, leaflets and catalogues for multi-channel retailers. Clients include Lidl, Tesco, Marks & Spencer and Boden.

In the year to the end of May 2013 the group achieved EBITDA of £7.6m on sales of £75m.

A new web press is on the cards for its York site, which currently runs three Manroland Lithoman web presses.

Two years ago, the company acquired Pindar Scarborough out of administration, adding high-quality catalogues to its offering.

"Pindar has proved to be a very successful acquisition for us. It’s an excellent company with very good people and it dovetailed perfectly," Ingram added.

The new Goss Sunday 4000 48pp short-grain press that is about to be installed at the Pindar operation is not included in the £10m as it has already been funded separately.

Installation of the press has been put back slightly because of the hiatus at Goss International in France.

"It was delayed by a few weeks because of the situation at Goss, but it will be in full production by December," Ingram explained.

Ingram said the company had initially been talking to private equity houses about potential investment, when its corporate advisors recommended the firm should look into the BGF offering. 

"It’s a good way to get capital, very akin to the old 3i model and that really attracted us."

The BGF’s £2.5bn fund was set up in 2011 by five of the UK’s major banks, with the intention of providing growth capital to firms with turnover of £5m-£100m.

York Mailing was advised by Lupton Fawcett Lee & Priestley, and DC Advisory; the BGF was advised by Grant Thornton and Pinsent Masons.