The new site, just two and 10 miles from Encore’s Peterlee and Washington manufacturing sites, will be fully operational by June 2024, though has already come into use.

Rapid expansion in the firm’s packaging business – which has tripled its turnover since 2021 – and an increasing demand from clients for product storage prompted the acquisition, according to Craig Allen, group sales director.

He told Printweek: “We’ve seen a change in the envelope markets, as mailing companies consolidate, and have less space and require more regular deliveries. The packaging market has seen real growth and we needed the capacity to service that growth.

“It’s a cracking site, with automated distribution, and it’s perfect for what we need.

“If anything, it’s big for day one – but we’re futureproofed, and we won’t need to look for anything elsewhere [if we grow further].”

Encore has grown substantially in recent years, jumping from £39m in 2021, to £49m in 2022. Its latest accounts, due to be published soon, will see its turnover increase further still to £55m, Printweek learned.

Finding the new distribution site was not an easy task, with the search lasting 12 months before the Peterlee site became available. When it came on the market, Encore knew it was the right place, Allen said.

“It came up for grabs, and we snapped it up,” he added.

The transaction, assisted by Kate Rickett of Muckle, is part of a major multimillion-pound investment the firm hopes will help fuel further growth.

“We’re proud of the work we have put into creating a sustainable business,” said David Cooper, managing director at Encore.

“[The investment] recognises the commitment we have made to our clients and our staff. Staff wellbeing is also a priority for us as is supporting the communities in which we work and draw our team from.”

Encore has plans to fit the new site with solar panels, just as it has with its other sites.