The move gives the Benson Group a 10% share in the estimated £850m UK carton market, making it the third largest in the sector, according to managing director Mark Kerridge.

Integrated Packaging will retain its 180 staff at its Gateshead location and remain a separate business operation within the group, while general manager Andrew Pybus will remain in his role.

The £18m business, which includes Bakkavör and Northern Foods among its client roster, marks the third Benson buy in as many years.

The group bought Medica Packaging in 2005 and Print Design & Graphics (PDG) in early 2006.

Kerridge said this latest addition to its stable would complement the existing Benson Box and PDG businesses. Common customers across the businesses would gain extra support in terms of disaster recovery and security of supply, particularly in areas such as die-cutting and plate-room activity, he said.

For the immediate future, Kerridge said that the group has no plans for further acquisition targets, but would concentrate on "strengthening its position, investing in plant equipment as well as in organic growth and improved profitability."

He said the group now has more than 15 presses, 15-plus die-cutters and more than 15 finishing lines, all of which he expected would need replacing annually, requiring a budget in excess of £2m each year.

The deal was funded by the Royal Bank of Scotland, although further details of the transaction were not available.