The Leicester-based firm, which specialises in the food, retail and pharmacy sectors took nearby Label Studio out of administration, following its collapse earlier this year.

Stuart Kellock, managing director of Label Apeel, said: "We serve the food industry and this buy will give us an excellent foothold in the beers, wines and spirits sector."

The deal was expected to increase Label Apeel’s turnover by around £800,000 to almost £4m, he said.

Its workforce of 10 has moved to Label Apeel’s Leicester base, staffed by 40 people who run MPS UV flexo machines.

Before its collapse, due to bad debt, Label Studio was a 10-year-old business with a name in bottle-labelling.

Managing director Dave Cox has joined Label Apeel as technical sales director along with his customer services manager, Theronda Knight, who retains her post.

"We had a bad debt of over £50,000 and a small company can take only so many kicks," said Cox. "We hope to grow in the toiletries, cosmetics and gift sectors."

Label Apeel, formed 26 years ago, makes sticky labels for Greggs, Tilda Rice, The Condiment Company and Premier Foods.

Kellock added: "Label Studio fell foul of unavoidable circumstances. We are excited about the new but complementary market sector we now serve."