The deal was completed on 26 February and is part of Burntwood, Staffordshire-based Mercian’s acquisition fuelled growth strategy.

Mercian has taken on a portion of Computype’s customer base which is centered around medical variable data and associated labels, the automotive industry, libraries and laundries. All of the acquired customers are based throughout the UK and continental Europe.

“We are constantly looking of ways to expand in our areas of competence as well as geographically,” said Mercian Labels managing director Adrian Steele.

“The areas involved require critical specialist constructions of adhesives, inks and substrates, and over our 50 years of growth we have a developed a high level of technical expertise in them.”

He added: “Computype have nurtured their relationships in these areas over a number of years, and this deal represents a careful handover of valued customers to a trusted manufacturer as they look to strategically focus in fewer core markets.”

Mercian has recently embarked on a £1m initiative to expand its capabilities in high volumes of variable data and improve and further automate its manufacturing capabilities.

“We have a lot to offer customers like these,” said Steele.

Computype chief commercial officer Sarah Richardson added: “A recent strategic review of our business in Europe highlighted the need for us to refocus around our core markets, where we can really help our customers, innovate with new products and drive differentiation.

“For the remaining, non-core product lines, we were excited to find a great partner in Mercian Labels, who has the capability and focus to service these customers moving forward.

“It was vital that we achieved a seamless transition and with the right people.  We believe Mercian Labels will achieve the best possible outcome for all concerned.”

The acquired Computype work will all be rolled under the Mercian Labels brand and the customers will be serviced by Mercian’s existing team. The business currently employs 60 staff and is still recruiting.

Mercian said its turnover is up by over 100% so far in 2021 and, in addition, it estimated that the Computype business could add in excess of £1m to its top line.

In December the company rewarded its staff with a £750 bonus to thank them for their efforts during 2020, which resulted in a record performance for the business.