Havelock issued a statement yesterday announcing the proposed sale to new company Ingleby (1884), which it said was part-controlled by Showcard Print senior management.

The sale, which is subject to shareholder approval, will help Fife-based Havelock to cut its net debts, which stood at £17.2m as of 31 June 2011.

The MBO team, members of which were not disclosed, was said to have secured a mix of debt and equity funding from subsidiaries of Lloyds Banking Group to finance the transaction, which is expected to conclude by 30 April 2012.

Showcard Print, which made a pre-tax profit of £2.9m on sales of £21m in the financial year to December 2010, was the most successful division of Havelock during those 12 months and the only one to record a pre-tax profit.

Operating a range of equipment that includes a KBA Rapida 205, Xerox iGen3 digital press and Inca Columbia Turbo Digital flatbed, Showcard's main manufacturing facility is based in Letchworth with a sales operation in Bristol.

Showcard Print will continue to lease its headquarters, Fontana House, from Havelock Europa for a 10-year period at a cost of £150,000 per annum from 1 January 2013.

Eric Prescott, chief executive of Havelock Europa said: "The disposal of Showcard will enable us to concentrate on the future growth of our core business of interiors fittings and fit out services.

"The reduction in our Group debt and the provision of amended medium term bank facilities mean that we are financially stronger and have a platform for growth."