Eustace will join Premier Paper as chief executive, a new role that is likely to have a broad remit, while Haines will take over what was Graham Griffiths' role of managing director of Premier Paper. Griffiths left the company earlier this year.

Eustace said both he and Haines would take up their new positions as soon as their contracts would allow, a matter that was currently being discussed.

He expressed his sadness at leaving what he described as a family company, with Eustace having joined the group back in 1972.

"Howard Smith has been the most significantly successful merchant company in Europe, and that is down to the people," he said.

He declined to elaborate on the reasons for his departure, but speculation about unrest within the UK side of PaperlinX Europe, which Howard Smith is now part of, has emerged throughout the year.

Talk of unrest emerged shortly after Buhrmanns George Dean was overlooked for the chief executive position of PaperlinX Europe at the end of last year, a role that eventually went to Eduard de Voogd. Separately, Martin Fothergill stepped into the role of PaperlinX president for the UK and Ireland, as eventual successor to Stephen Mason.

A search for successors to Eustace and Haines is understood to be underway.

Picture shows Martyn Eustace.

Story by Andy Scott at Drupa