Leighton Buzzard-based Codex Solutions, which has been trading for three years and has a turnover of £2.5m, purchased a Ladypack Shrinkwrapper, two Argosy Flow-Wrappers and one Adpak Flow-Wrapper from PCP.

The company hopes that its acquisition will enable it to grow its turnover by £400,000.

PCP, which was also based in Leighton Buzzard, and whose former owner Brian Cox is now employed by Codex Solutions as contract packing development director, specialised in cosmetic and toiletry packaging.

Codex Solutions managing director Julian Rolfe said PCP had been forced to close because of high overheads.

He added: "We have built the PCP business into our own company so there are very few extra overheads. We have taken on eight staff and as both companies are based in the same town it has been a very smooth transition.  

"Book packaging is still our primary focus but we are now able to offer a wider range of services to our existing customers."

Rolfe said the company was looking to further expand the business by organic growth and strategic acquisition.

"We are likely to be purchasing a Sollas Over-Wrapper and IIapak Flow-Wrapper in the near future," he added.