The deal puts Sherwen at the head of a group targeting revenues of £8m in its first year.

Commercial Envelope Group was formed on 1 December 2010 to acquire both businesses, with the deal completed on 16 December.

Although the two companies will continue to operate as separate entities, Commercial Envelope Group sole director Sherwen said that they would also offer advantages to one another.

He said: "Both companies have strong customer bases so they will continue to trade as individual companies. But there are a number of advantages that the businesses offer to one another.

"EPC now has access to envelope manufacturing and Crossways has access to additional overprinting. Both companies have the added benefit of being part of a group."

According to Sherwen the deal did not involve any redundancies at two businesses of the 60-staff group.

He said: "We will look to grow both organically and through acquisition and will be investigating some strategic partnerships as well."