On completion of the deal, which is expected to close at the end of the month, chief executive Kim Graven-Nielsen (pictured) will stand down, his role passing to chief financial and chief operating officer Carsten Knudsen.

E-G claimed the packaging wing, which is largely made up of the former Barco business, has been profitable for the last few years. It expected net revenues to the end of 2005 to be 74.5m (110m), up 12% on 2004. It also predicted earnings before interest and tax would exceed 8%.

Kirkbi is in talks with a trade buyer for the small offset division of the firm.

Sources have tipped Presstek as a potential suitor for the division.

Story by Barney Cox