The move lifts the packaging firms turnover to around 55m and follows the companys purchase of Crewe-based Medica earlier this year.

PDG largely operates in the UK chilled food industry and its founders and joint managing directors, Gordon Scorer and Dave Gillander, will remain with the firm.

"PDG has a very strong reputation and is a financially stable company," said Benson Box managing director Mark Kerridge (pictured). "Bringing the companies together to make effective use of manufacturing capacity and respective industry expertise makes eminently good sense."

In May 2004, PDG was hit by a disastrous fire, but since then it has rebuilt and grown with a turnover of 16.5m. It has a workforce of 158 at its 8,000msq purpose-built facility on Tyneside. Its clients include Greencore and Campbells.

"We see no reason to interfere with a winning formula, so it will be very much business as usual," added Kerridge.

Grant Thornton Corporate Finance acted as adviser to Bardon-based Benson Box while The Royal Bank of Scotland provided funding for the acquisition.