George Waterston & Sons has agreed to buy the business of fellow Edinburgh-based printer Mackenzie & Storrie, in a deal that will see the companies move to a 5,500m2 purpose-built site in the city in late 2002.

"There are good synergies between the companies, but we offer quite diverse product ranges. It makes good sense to combine the two operations," said George Waterston & Sons chairman Graeme Douglas.

The firms will continue to trade independently, retaining both trading names.

Both operate in the financial printing sector, with Waterston handling security printing such as cheque books.

Mackenzie & Storrie produces report and accounts.

All of the near-200 staff employed across the two sites will be retained. The combined operation will have a turnover of 11m.