The business will operate under Paperlinx's Northampton-based paper merchant, Robert Horne Group.
A spokeswoman for Paperlinx said some redundancies have been made in roles that have been duplicated, leading to a reduction of 6% of the workforce.
She said: "The company is in a consultation process and obviously wants to be able to redeploy the affected individuals within the Paperlinx Group if possible. "At this stage we cannot comment on the actual number of redundancies."
However, she said that no sites have been closed, although there has been consolidation of offices in the same location.
Paul French, Robert Horne's managing director, will continue as divisional director until a replacement is found.
He said: "One trading division for sign and display will allow us to provide a better level of service and product choice for our customers, while improving our efficiency and operating capabilities."
He added the merging of the two businesses would give customers access to a larger range of products.
Elsewhere, the company has boosted its presence in the packaging market with the launch of Purple Packaging.
Paperlinx already has three regional packaging businesses in the UK: 1st Class Packaging, Donnington, and Parkside.
Purple Packaging will provide bespoke or ready-to-order packaging products and will be based in Coventry.
The packaging division will be headed up by Marc Jacobs, who was formerly the packaging sales director at merchant Antalis. He will join Paperlinx in February as managing director.
