The move follows the retirement of Ace Envelope's boss Michael Rubenstein, who had been running the company for nearly 20 years.

The Envelope Works employs 30 staff at its Earby, Lancashire print-site and expects to have a turnover of around £5m this year. Following completion of the acquisition deal, the value of which was not disclosed,  Ace Envelopes’ London business will be transferred to Lancashire.

Ace envelopes was founded in 1994 and its annual turnover is just under £1m. The company’s two directors and four part-time staff chose not to relocate.

Managing director of The Envelope Works Mark Farrimond said: "I’ve known the team at Ace envelopes for the past 19 years. The business model fits perfectly into our portfolio and what we’re trying to do, and gives us access to a new client base of around 750 customers."

The Envelope Works will operate Ace Envelopes business development through its sales office in Cambridge. "We may be looking to take on new people in sales to help with our plans to drive The Envelope Works’ new business," said Farrimond.

The company is in the process of implementing a long-term growth strategy, but the current market conditions have slowed its progress, he said. "It is a tough marketplace, but we are always on the lookout for strategic moves. It’s still early days, but I can’t wait to get started," added Farrimond.