In the all-share deal, more than £4.5m of new capital has been raised by existing Writtle and Loewy shareholders, which will be invested in capital investments and further acquisitions.

Loewy chairman Will Whitehorn said: "As marketing services continue to develop at the same rapid pace as digital technologies and social media, we believe that the winners will be those organisations in the industry that can invest for the future while remaining entrepreneurial in their outlook. Bringing together these two complementary groups creates precisely this environment."

Writtle chairman and chief executive Robert Essex added: "It is rare to find such a complementary mix between two marketing services groups.

"We will combine Loewy’s renowned brand and excellent operating companies with Writtle’s business model of decentralised growth and equity involvement for key directors to fuel further growth. It is a strategy that has served us well to date."

The combined group incorporates 16 companies, including a number of print-specific businesses including Maglabs, Magnet Harlequin, Arken, Connect Packaging and Creo Print and Production.

It will cover areas including artwork, design and production of packaging, branding, digital communications and asset management, point-of-purchase, product development and design, PR and retail design and strategy.

It has a turnover of around £100m and employs more than 400 staff.

For, more see this week's edition of PrintWeek.