Paper agent HH Pegg is on the hunt for more acquisitions following the purchase of Worsley Paper, which is known as the "merchants merchant".


"The offer came very much out of the blue," said Worsley managing director Philip Worsley. "While previous approaches have provided conflict, this was a marriage made in heaven."


Worsley said that the company would continue to trade as normal, and added that it may expand its warehouse space.
"The move will enable us to offer more depth in stock, along with a variety of new products," he said.


Discussions between the two companies started six months ago. HH Pegg chairman Nick Steidl said both sides soon realised the deal would be a very good fit.


"Worsley deals with the same merchant contacts as HH Pegg, and this gives us an extra dimension in our relationship with merchants and the services we can provide," said Steidl.


Dagenham-based Worsley stocks over 7,000 mill-branded products from around 40 suppliers, and claims to sell to all UK paper merchants.


The firm, which has a turnover of 2.5m, went into liquidation in 1997 as a result of property debts, but was re-established as a standalone operation following a takeover by Xerox subsidiary City Paper.


Story by Andy Scott