The deal was finalised on Friday (6 August) after months of protracted negotiations and the conclusion of all the complex legal requirements worldwide. Financial terms were not disclosed.

Goss chief executive Bob Brown said customers "must see the benefit" from the combination of the two businesses, which gives Goss a major presence in the commercial web market for the first time: "We believe the combined product portfolio, global manufacturing infrastructure, team of industry professionals, innovative technology portfolio and the obvious synergy for our wider newspaper and commercial press ranges give us a strong competitive edge for the future," Brown added.

Heidelberg Web Systems had sales of Euro376m (251m) in the year to 31 March and made a loss of 49m. It employed just over 2,300 staff. Goss "broke even" on sales of $350m (190m) according to majority shareholder MatlinPatterson. The firm employs 2,000 staff including 700 at its Chinese joint venture.

Market leader MAN Roland had sales of 417m in its web division in 2003, while KBA's web and special presses unit (which includes gravure) had sales of 409m.

Heidelberg will take a 15% stake in Goss, and will provide sales and service for some products in Germany, Eastern Europe, Switzerland, South Africa, Mexico, Brazil and South Korea. Around 20 UK employees of Heidelberg Web will transfer to Goss.

The Goss name, described as "one of the oldest and most respected brand names in the marketplace", will now be used across the enlarged product range. There is little product crossover between the two companies, with the obvious exceptions in the newspaper press portfolio of the SSC Community and Mercury, and Uniliner S and Mainstream.

Goss' restructuring plans for the enlarged business, which now has two manufacturing plants in France, are the subject of much speculation. MatlinPatterson has committed $100m for this process.

Story by Jo Francis