The agreement means that CDMS now manages and processes 7% of the UK's 4.2bn consumer direct mail items.

This latest deal will mean Merseyside-based CDMS also provides Shop Direct with print and mail services for an initial three-year period, in what is hoped will be an on-going agreement.

CDMS document services director Martyn Viquerat said the deal gives the firm substantial growth, with the operation mailing more than 100m direct mail items per year.

This takes the total direct mailing capacity for CDMS to more than 300m items per year.

Viquerat said that following the acquisition of the Worcester operation the firm would service other clients from the plant.

Equipment at Worcester includes six IBM 4000 printers and 10 Pitney Bowes Vitesse Intelligent Inserter Systems.

As part of the deal,  CDMS has taken on the 100 staff based at the site. He said the company would continue to be on the lookout for further acquisitions and strategic growth opportunities as and when they arose.

CDMS's client base includes big names such as Lloyds TSB, Royal Mail, The Daily Telegraph and British Gas.

CDMS is the commercial data management and direct marketing services company of the 1.2bn Littlewoods Group.

The firm has 350 employees at two sites in Whilston and Worcester, and has an annual turnover in the region of 15m.

Story by Andy Scott