"Organic growth is very difficult in this industry, and Ive been discussing a merger with MGP for more than 12 months now," said Chromocraft managing director John Burgess.

"Each company has been going for more than 25 years, our cultures are similar and our skills are complementary. We aim to take the best from both companies and make something bigger and better."

The new business will be called MGP Chromocraft. Burgess will be joint managing director together with MGP director Mike Cook. Former MGP partner David Heath has sold his stake.

Investment in new kit for the firm includes the five-colour Speedmaster 102 CD LX from the defunct Stockport printer Finchmark, which will replace MGPs existing SM 102. A new Lamtex laminator and a Heidelberg Topsetter CTP system have been ordered for immediate installation.

MGPs six-colour Speedmaster 74 LX and five- and two-colour Speedmaster 52s will be retained, while Chromocrafts three Heidelberg presses will be sold to provide working capital.

Within a month Chromocraft will move to MGPs 1,900m2 factory. "We anticipate around 10 redundancies, leaving a combined staff of 65 in the new company," added Burgess.

Story by Jo Francis