The deal, which was signed on Monday afternoon (27 July), creates a £100m print group largely focussed on magazine production.

"I think its very good news. I make no secret of my admiration for Southernprint, but it was becoming clear that the likelihood of its parent [Newsquest Media Group] making any significant investment to grow the company was not going to be forthcoming in the current environment," said IPC manufacturing director Jasper Scott.

"I think Paul Utting has done a brilliant job in the way he has transformed Wyndeham since he rescued it from 'Iceland' and I'm very positive about the combined businesses. My sincere hope is they will be able to merge the best bits of both companies. There are a lot of opportunities to link pre-press and print."

He also hinted that the combined group potentially becomes a stronger contender in his £10m review of IPC’s magazine print as a result of the deal.

Chris King, production director of PrintWeek's publisher Haymarket, who recently extended a 35-title deal with Wyndeham, was also supportive of the deal.

"Being a major customer of Wyndeham this is a positive endorsement in the company and Paul Utting by Walstead. It's also a good marriage in terms of plant and personnel," said King.

However, King's and Scott's words of support were countered by a number of buyers who feared the long term consequences of consolidation.

"This deal has got to be good news, because there is a lot of overcapacity in the [magazine] market, with too many people chasing not enough work," said William Reed production director Christopher Reed.

"Is it good that the industry is going down the consolidation route? That's a tough call, because consolidation just means that there will be fewer players in the market for the print buyer and that's a concern. Am I surprised this has happened though, no I'm not."

Several other buyers also mentioned the bindery fire at Southernprint's finishing operation Southernbinders and wondered if Walstead would invest in new binders at Poole when it has a substantial binding operation at Wyndeham Heron.

Another buyer, who wished to remain anonymous, raised the spectre of consolidation in the web offset sector ultimately meaning that the UK market would mirror the US, where there are only two major players.

"From a printers point of view it would be beneficial, longer term though, from a publisher's point of view it would mean substantially less choice and prices would harden. Which wouldn't be good news for us," said the unnamed buyer.

For more details and reaction to the deal, see tomorrow's issue of PrintWeek.

Read associate editor Jo Francis's blog on the deal.