Envelopes Ltd was formed from Madison Commercial, a Buckinghamshire stockist and overprinter established 15 years ago this month and Nottingham manufacturer Board Envelopes on March 31.

Madison Commercial acquired its supplier Board Envelopes four years ago from its administrators but both companies continued as separate entities. Previously Board Envelopes had been turning over around £400,000 a year, growing to £2m under the bigger company's control.

Madison Commercial managing director, John Brown, has become managing director for Envelopes Ltd and is joined by former Board Envelopes managing director, Steve Hatchett as its new commercial director, Simon Gerson as operations director and Richard Hayden financial director.

There are no current plans for job cuts and Envelopes Ltd will run across both sites, with storage increasingly being shifted to Newark, Nottinghamshire to save money.

Brown said a conservative estimate for the combined company’s turnover at the end of its financial year on May 31 was £6.5m, with a net asset value of around £800,000. Of this between £4.5m and £5m was from Madison Commercial.

He said turnover at both companies had been growing steadily over the past four years and trading between them had increased.

The merger will allow the company to benefit from economies of scale and reduced administration.

Brown said: "It’s so much easier to run it as one company, much simpler. Madison deals more with the international market but Board Envelopes didn’t so it gives an opportunity for Board Envelopes to use the facilities that Madison had."

Envelopes Ltd has a staff of 60 who combined speak 12 languages. It has customers all over the world and a significant client base in France, representing 50% of Madison Commercial’s turnover. The bigger company also had more advanced use of e-commerce.

Envelopes Ltd has a range of over 5,000 different types of envelope in a variety of materials, colours and styles as well as offering bespoke printed products. It has a wide client base across a range of industries and its products are commonly used by marketing and advertising agencies. It contracts out between 3% and 4% of its overprinting.

It makes use of an integrated Orderwise stock and order system, allowing same day dispatch and discounts for customers ordering in bulk.

Brown added: "It seems to have been accepted very well by people as a good idea. We have got a good relationship with our customers and suppliers."