The move, revealed by PrintWeek last week, comes as part of a further refinancing at the highly-leveraged company which has debts of almost  500m.

The new money relates to the massive 120m "True North" investment programme currently underway, designed to radically reshape Polestar's UK operations.

Polestar said the fresh funding injection would reduce its debt "and provide the group with a substantially strengthened balance sheet and enhanced financial flexibility".

The 490m turnover group has been in talks with Investcorp and its banking syndicate since the end of last year.

In a statement chief executive Barry Hibbert said: "These investments further strengthen Polestar's position as the UK market leader, enhancing the group's cost base and providing printing, binding and polybagging capabilities that are unmatched in the local market or by those continental printers currently serving the UK gravure market."

The revamp of the group's operations is intended to "transform" the profitability of the company, allowing Investcorp to sell its stake or float the company by 2007.

Story by Jo Francis