Reece Owen, managing director of the 17-year-old print business, which has always had a small in-house design team, spotted an opportunity to bring in more profitable work by establishing a separate graphics business offsite.

"We needed to be able to sell our design services to the higher end of the market and we couldn't do that with a small studio in a factory environment," he said.

Following the acquisition, Designbanc has moved to new premises in Deganwy Quay, in Conwy, and merged with the design team from Llandudno-based Design 2 Print.

The deal, which was completed earlier this year following around 12 months of discussions, is expected to increase margins and turnover across the two firms, which have a combined staff of 22 and are targeting £1.5m in sales next year.

"Print profit margins are down because the industry has taken a bit of a battering with the recession and with paper and consumables prices going through the roof" said Reece.

"The work the design studio brings in is a bit more profitable and we're trying to increase the volume of that higher margin work and upgrading our existing design facility moves us a step in that direction."

Designbanc founder Rachel Lee and co-director Charles Pragnell have retained the remaining 48% stake in the company.

Lee told local newspaper the Daily Post that the merger was "a logical step".