Print and packaging specialist Encore Group has acquired former competitor Heritage Envelopes Limited in a deal that promises new jobs.
The £55m turnover group says it will create 20 roles at its Washington and Dewsbury sites, while continuing to operate Blackburn-based Heritage as a subsidiary. It brings together two companies described as among the longest established of º£½ÇÊÓƵ envelope makers.
Encore’s managing director, David Cooper, said: "Acquiring Heritage brings together two highly respected names in the envelope world and enables our group to bolster production levels." The deal is the latest driver of growth at Encore, which now employs more than 300 people and in 2023 acquired a 103,000 sqft logistics site in Peterlee - on the site of the former Walkers Crisps distribution centre - to deal with demand.
In 2018 the group rescued Leeds' The Great Northern Envelope Company, saving more than 120 jobs. And three years prior to that it acquired Spanish competitor Tompla Envelopes.
The acquisition of Heritage Envelopes Limited, from German packaging group Mayer-Kuvert-network GmbH for an undisclosed sum, will mean "business as usual" for the firm's customers and suppliers, according to Mr Cooper. He added: "The high level of service that is associated with Encore will be received by clients of both businesses with no interruption to supply."
Former Heritage managing director, Mark Sears, will continue in the same role with Bestpac º£½ÇÊÓƵ Ltd, a paper bag manufacturing business owned by Heritage which will also continue to trade. He said: "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."
The latest available accounts for Heritage, covering 2023, show turnover of £23m and an operating loss of more than £436,000. Within the documents, bosses had talked of a competitive market, with paper prices remaining high along with growing freight and energy overheads. Directors also talked of potential within the firm's bakery bag division, which had increased volumes by 21m.
Meanwhile Encore generated an operating profit of £7.1m in the same year, on turnover of £55.6m. Bosses there described 2023 as a challenging but fruitful year, in which the group had made inroads in the paperboard packaging market and invested in staff, machinery and the new premises having spent about £8m on business improvement activities since 2020.
Advisors to Encore on the deal were Newcastle-based Muckle LLP and Leeds' Brown Butler. While the Mayer Group were advised by Blackburn-based Napthens, Connect Financial Management and Blackburn-based PM+M Solutions for Business.
Heritage Envelopes as founded in 1986 and is said to produce about 150million envelopes each month.
