The deal completed on Tuesday (3 June). Encore acquired Blackburn-based Heritage on a going concern basis from German owner Mayer-Kuvert, itself part of the Mayer Group.
The terms of the deal were not disclosed.
Encore Group said the buy provided “much-needed consolidation to help maintain a healthy envelope market”.
Managing director David Cooper said he expected customer and supplier accounts to continue operating seamlessly, and it was very much “business as usual”.
“Acquiring Heritage brings together two highly respected names in the envelope world and enables our group to bolster production levels,” he said.
It’s the latest expansion move for fast-growing Encore Group, which has sites in Peterlee, County Durham; Washington, Tyne and Wear; and Dewsbury, West Yorkshire.
The group acquired Great Northern Envelopes in 2018, and expanded into a 9,600sqm logistics site in Peterlee last year.
The Heritage buy could potentially create more than 20 new jobs.
Encore Group had sales of £55.6m in the year to 30 November 2023, and made an operating profit of £7.1m. The group employed 286 at that time.
Heritage Envelopes has been loss-making since 2021. The business had sales of £23m in the year to 31 December 2023, and made a bottom line loss of just over £1m. It employed 115 staff at the date of the accounts.
Encore Group is the UK’s largest independently owned envelope manufacturer. The business also offers bespoke packaging products for customers in food, retail, healthcare and ecommerce.
Heritage Envelopes produces around 150m envelopes a month. It will continue to trade as Heritage as a subsidiary of Encore.
Mark Sears, the long-standing CEO of Heritage, will remain with the Mayer Group and helm its Bestpac UK paper bag manufacturing business.
He commented: “This deal is important for both parties as it allows Mayer to concentrate solely an exciting phase of growth for Bestpac and for Encore to boost its envelope volumes in what is a very tough market.”
Encore was advised by Muckle’s Newcastle office and Brown Butler in Leeds. The Mayer Group was advised by Napthens in Blackburn, Connect Financial Management and PM+M Solutions for Business.
