HFS Projects, an investment vehicle of which Scanlon is chairman, has acquired Swindon-based direct mail production and fulfilment group GWC.

The group was acquired from administrator UHY Hacker Young on Monday (29 November) in a deal negotiated over the weekend. It will be merged with HFS' existing DM facility Stream Direct Communications to create an 18m group, which will trade as Stream GWC.

Cirencester-based Stream, formerly Brann Direct Communications, was acquired from French media group Havas earlier this year (PrintWeek, 20 May). Its merger with GWC, which is likely to result in its relocation to Swindon, is planned for early 2005.

"We knew before we bought Brann that we needed to buy something else. An 8m business wasn't big enough, we needed more scale," said Scanlon who added that HFS planned further M&A activity. "We're talking to a number of parties who are either interested in consolidating with people like us or want to broaden their service portfolio with a medium-sized player such as Stream GWC."

Stream GWC's services include data management, lasering, enclosing, poly-wrapping, hand fulfilment and a call centre. "One of the key differentials is that we have deliberately avoided web and sheetfed litho printing," said Scanlon. "We have no plans to invest in those mechanicals because there is sufficient capacity in the UK to obtain good pricing."

GWC's preference shareholder Alan Halfacre has left the group and HFS plans to announce the managing director of the new business in two weeks.

Last week Ringdark, in which Scanlon is an investor, acquired Swindon corporate printer Wace (PrintWeek, 25 November).

Scanlon is also chief executive of Thomas Potts, just renamed TP3. The business has cash to spend following the sale of its print management arms, CCS and Eurographics, at the end of last year. Scanlon said he planned to do "something different" with the business next year - which may not be in print - hence the name change. 

Story by Lauretta Roberts