Managing director Ian Wright said the deal was the culmination of months of negotiations with Grenadier for the 57-staff company. There are no changes to the companys management team.

We are very sincere about the opportunities here for the future success of the business. It [the MBO] was the best way to expand the business and take it forward, said Wright.

He plans to bolster the companys capacity, which currently includes Gallus letterpress and screen-printing machinery, with new equipment at the start of next year.

We will install new equipment, but its not finalised. It will probably be a new combination printing press, said Wright.

Yorkshire Fund Managers and Bridges Community Ventures financed the buyout, for an undisclosed sum.

Bridges Community Ventures is the UKs first community development venture company, established to invest in high-growth potential businesses in the under-invested parts of the country.

Wright said that Harlands Labels, which has a 6m turnover, would focus on building relationships with its clients to drive it forward.

The companys clients include Boots, Superdrug, Marks & Spencer and The Body Shop.