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. 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 will result in its relocation to Swindon, and 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, adding 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."

Stream GWC's services include data management, lasering, enclosing, poly-wrapping, hand fulfilment and a call centre. Said Scanlon: "One of the key differentials is that we have deliberately avoided web and sheetfed litho printing, as capacity in the UK is sufficient 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.

Scanlon is also chief executive of Thomas Potts, just renamed TP3, which plans to take a new direction, hence the name change. Scanlon said it might not be in print.

Stream GWC

From early 2005 it will be based across two sites in Swindon

Has projected sales of 18m and a staff of 265

Services include lasering, data management, enclosing, polywrapping, hand fulfilment, DM management, data capture and call centre

Will have the capacity to produced 300m mail packs per annum

Story by Lauretta Roberts