The two merchants will remain in their respective locations of Epping (Ovenden) and Central London (DHM).

The combined businesses will have an annual turnover of around 20m and employ 66 staff. Ovenden Papers chairman Michael  becomes chairman of the operation.

"This is a very exciting development for everyone invloved," said Ovenden.

The former owners of DHM, company secretary Paul Guest and chairman Martin Randall, will remain involved in the business.

David Little and Peter Blakeley will retain their roles as joint managing directors of DHM. Michael and Nigel Ovenden will continue to run Ovenden.