Essex-based PPE, which employs 280 staff, has been taken over in a deal worth an initial £22.1m and a further £5m of deferred consideration.

The company, which also operates through a subsidiary in the Netherlands, recorded a £3.7m operating profit on a £27.3m turnover for the year ending 31 January 2009.

PPE's joint managing directors Neil and Nigel Parker will remain in their positions at the business, which was established in 1971.

Neil Parker said: "Together with HL Display, we can expand into new customer segments, while improving our service offering to existing customers.

"We now have an opportunity to create a leading business in our niche in the British market. In addition, this opens up completely new market opportunities outside the UK."

The PoP business, which specialises in retail displays and off-the-shelf products, such as floor stands for companies such as Tesco, became the global beta site for Inca's Onset S20 high-speed UV flatbed printer last year.

HL Display's acquisition of PPE is expected to strengthen its position in the UK market and boosts its UK staff headcount to around 330.

Gérard Dubuy, chief executive of HL Display, said PPE was "an ideal fit" with the HL Display Group.

He said: "The company has strong skills and extensive experience in designing and manufacturing bespoke merchandising solutions, which we will benefit from in all our markets.

"Furthermore, they add multi-material production capacity to the group. In combination with our existing product range, HL Display can now present a strong and broad product offering to the branded consumer goods segment, one of our target areas for future growth."