Communisis is to buy HSBC's statement production business in a deal estimated to be worth 250m over 10 years.

The division handles the production and despatch of the majority of HSBC's UK paper-based customer communications, including statements.

A total workforce of 255 will transfer to Communisis, 174 of which are permanent HSBC staff and 81 are temporary. Communisis will pay 3m to acquire the assets relating to the operations. The transfer is expected to take place in January 2006.

Communisis has also agreed a five-year contract with HBOS worth 60m. The deal covers the provision of all direct mail and security printing services for a number of the financial services giant's brands. It incorporates the implementation of Communisis' propriety document management software, c-store.

"These relationships are unrivalled in our industry and underpin Communisis' strategy for growth," said Communisis chief executive David Jones (pictured).

The announcements come as Communisis posted its half-year results. Profit from the group's operations was up 8% to 8.1m. Turnover increased 2.5% to 134.9m.

"Traditionally weak demand in the summer months in print and direct mail has been worse this year, and we do not expect that performance in Q4 will be sufficient to offset the weak trading in July and August," said Jones

The results were broadly in line with the company's pre-close trading statement, which said that difficult market conditions and the cost of European expansion would peg profits back.