Print management company, Communisis, said the deal, which is subject to shareholder approval, was based on factors including the likely future performance of the businesses, their fit within the group and the future strategy of the board.

Chief executive Steve Vaughan said: "It has been clear for some time that Bath Business Forms was part of our Group that fitted least with our strategic focus on marketing communications.

"We are therefore exiting this non-core part of our business for a cash consideration and in a non-dilutive way, leaving us free to concentrate on higher value, growing parts of our business and accelerate their growth."

Although the divisions are currently profitable, reporting a pre-tax profit of £1.55m for the year ending 31 December 2007, the level of profit at the two Bath businesses has been declining year-on-year for some time.

In selling the businesses, Communisis aims to exit what it described as "a highly commoditised and very competitive area of the print market" and to avoid the likely ongoing restructuring spend associated with competing in that market.

Vaughan said: "If we kept Bath within the group, it's a declining profit stream, so it's a sensible assumption to think you'll be making cost reductions every year. That's just life.

"I have to say, the management team who're acquiring the business have a different approach – and that's to take the business in a different direction, sell to a wider range of customers – and then you're not necessarily talking about it being a declining profit stream."

Communisis will be paid a first cash installment of £8.2m upon completion of the deal, with the remaining £4.6m payable in installments to 1 July 2012.

For more information see this week's PrintWeek.