It is the first of what many predict will be a wave of consolidation in packaging repro as globalisation and demands for lower costs hit the sector.

"The English market is very individual and important because a lot of brand owners operate worldwide out of London or the UK," said Matthews International Europe international sales and marketing manager Bernhard Stradner.

It ends months of speculation about potential suitors for InTouch, which had rumoured to be in talks with Southern Graphics.

"We've talked to a lot of people but only ever got exclusive with Matthews," said InTouch managing director Bob Watkin. "It brings the ability to move business forward. Matthews wants to be the biggest in Western Europe."

InTouch had sales of just over 20m and 260 staff. Its addition takes Matthews Europe's sites to 14 and its staff to around 700, creating a group with sales of 68m (e100m).