The five-strong MBO team is headed up by GNE managing director Warren Shermer and was supported by Yorkshire Fund Managers (YFM). The Leeds-based company is a supplier of envelopes to financial institutions and direct mail operations.

According to Adare Group chief executive Nelson Loane, the proceeds of the sale would go towards reducing debt and "focus investment on core areas of the business to drive future expansion".

"It was a good opportunity for us at GNE," said Shermer. "Over the past five years the business has excelled and we have plans to grow the business and invest in machinery."

Also involved in the MBO were Matrix Private Equity and Baring English Growth Fund. The Royal Bank of Scotland, RBS Commercial Services and Lombard provided banking facilities for both the acquisition and future development. Clearwater Corporate Finance advised the MBO team.

GNE has a turnover of 23m and has a workforce of 123. The firm's 7,700sqm site is located on the Treefield Industrial Estate.

Story by Philip Chadwick