Image Factory employs 60 staff at its Wiltshire facility, and specialises in creative executions in POP and POS, as well as display packaging and shelf-ready packaging. Its services span design, print and logistics and it has its own bespoke online job management system called Ubiquity.

Clients include major retailers and brands.

The firm’s standalone design studio Image Creative is included in the acquisition.

Image Factory managing director Terry Smith and his management team remain with the company. Smith said the Image Factory offering complemented the Service Graphics vision: “Everyone at Image Factory is excited to be joining Service Graphics… customers of both businesses will benefit.”

Service Graphics Display managing director Martin Hutchings said he was delighted to add the Image Factory business to the growing operation.

“Terry and his team have a great business, a strong, highly skilled team and outstanding creative and production capability with a long-term record of working with excellent brands and retailers,” he said.

Over the space of 12 months Paragon has established a major presence in wide-format, exhibition and display graphics through a string of buys, with details of a further separate acquisition in the large-format print space expected to be released soon.

John Eager, chief executive of Paragon’s Graphics Services division said the group was “continuing to build a graphics business in the UK that is unrivalled in scale, creativity and quality”.

The terms of the deal were not disclosed.