The move, predicted by PrintWeek earlier this month (PrintWeek, 10 May), will see Ormolus Bob Hodgson (pictured) leading the enlarged group as chairman. Waddies chairman Iain MacRitchie will step down.

The enlarged group will focus on the targeted financial services sector.

The deal was signed on Monday (21 May). Ormolu has acquired all the share capital of Waddies, which had been backed by venture capitalists 3i. Ormolus backing for the deal came from the Bank of Scotland.

"I approached them and said it would make a lot of sense," Hodgson told PrintWeek. "We have a requirement to expand our dm business, which has been very successful, into web and continuous lasering. And it puts us in a stronger position in terms of our own purchasing."

Waddies is based in Livingston and has a London sales office, while Ormolu comprises Edinburgh-based Pillans & Wilson, Greenaways in London, and Trafford Press in Manchester.

One source said it seemed likely that Pillans & Wilson and Waddies would merge onto one site.

Gordon Samson, currently managing director of Pillans & Wilson, will be the director in charge of both companies. Iain Pittman will continue to run Waddies.

"With the combination of strengths that each business brings, there is no doubt that we have created a group with the capability to lead the market," said MacRitchie.

Waddies finance director Nick Walters will also stand down.

The exact terms of the deal have not been disclosed. It is also unclear what effect the deal will have on negotiations to cut wages at Waddies.

Story by Jo Francis & Gordon Carson