The supply-chain management company based in Letchworth, Hertfordshire, is to link up with the Keating Group's creative project management arm Diverse Image. The group refused to comment on the exact size of the shareholding and the investment.

"We've made this move because it means we can now cover both the north and south of the country," said Keating Group chairman Mike Keating.

He added that the investment strengthens its artwork capabilities, particularly in mock-ups of cartons. The move was "just the beginning of more strategic investments".

There are no immediate plans to merge Mold-based Diverse Image and Packaging Networks although both companies will work closely together. They have both worked for British American Tobacco.

"We will undertake a joint strategic approach to the marketplace and the size and capabilities of Packaging Networks make it a very good fit. It also gives us the opportunity to increase capacity," said Diverse Image managing director Paul Wyatt.

Earlier this year Diverse Image clinched a lucrative contract from Kellogg's for all of its flexible packaging repro. The North Wales firm covers all Kellogg's UK work (PrintWeek, 29 April).

This year Keating Group introduced its Keating International Secure Systems (KISS) service. It offers a 24-hour online project management service allowing clients to approve designs and artwork via a secure internet portal. The group also does gravure cylinder engraving.

Story by Philip Chadwick