LPC managing director Nick Lee will become managing director of both companies, while Midas managing director Paul Wells will become works director.

Lee said: "The two businesses have completely different client bases, and so the merger was ideal.

"As a business, we have wanted to diversify, and this move means that we can now offer each other's products."

Lee added that the company would need to cut some costs following the merger.

He said that the business will also be looking at staffing levels across the two companies, which employ a total of 125 staff.

Southampton-based LPC Print is a commerical and digital printer that produces catalogues, flyers, books and annual reports.

The £4.2m-turnover company has 47 staff, and plans to invest £2.5m in new kit by 2 November on a new Heidelberg XL 75 10P, an ST450 stitching line and KH66.6folder, to replace a 10-colour Heidelberg.

Farnborough-based Midas Press is a colour printer that has litho and finishing facilities. The 78-staffed company has a 12-colour B1 Heidelberg press, a 5-colour B1 press and a Print Master.

Lee said the company will now be able to offer digital print and personalistion through to B1 litho.

In January this year, Midas Press was bought by its former management team after appointing Middleton & Partners as administrators.