The MBO at the £1.2m-turnover company was first mooted eight years ago. Commercial director Alastair Kerridge said: "It was a question of making it viable for both parties to progress with the sale. The sale almost came to completion two years ago but in terms of finances it is now right for both parties."

The deal was funded through personal investments made by managing director Paul Middleditch, finance director Nigel Greengrass and Kerridge.

"The former shareholders had nothing to do with the day-to-day running of the business. It was more of a historic partnership but there will be no immediate changes to the business," said Kerridge.

Middleditch said: "When I joined, the business was heavily reliant on just a few customers and our procedures in house reflected that. We have increased our client portfolio fourfold."

Cavalier Mailing, set up in 1986, specialises in all aspects of the direct mail industry, such as mailshots, polywrapping of subscription magazines, sourcing of print, and discounted postal services in the UK and internationally.

The company was formerly owned by Blakes Holidays.