Polestar Jowetts managing director Peter Watson led the buyout of the Jowetts and Taylowe packaging businesses and the Broadley and Hannibal label operations from the group.

"I approached Barry [Hibbert, Polestar chief executive] at the end of last year," said Watson. "They've been consolidating and focusing on magazines, it's a win-win for both. We feel we can develop as a group.

"It wasn't significant for Polestar, but it's our focus. They're good companies and were well run to begin with."

Polestar group finance director Peter Johnston said: "Packaging has never been core to the group's business and we've never disguised the fact. We've been looking at a number of offers over the years, but they never matched our expectations. Boxstar's offer and strategy were significant enough to attract our attention. It's a good management team at the sites and headquarters."

Watson (picutred right) has become chief executive of Boxstar and is joined by property and healthcare businessman Chris Jones as chairman (pictured left) and Julian Briggs, formerly financial director of Hallmark, as financial director.

They were backed in the deal by ABN Amro division Venture Finance, the price paid was not disclosed.

Boxstar is taking on all 350 staff. It plans investment over the next two years.

The packaging business had sales of 45.9m in the last financial year to the end of September 2003, which was 9.4% of Polestar's total turnover.

Despite falling sales for the packaging division its profits have been improving. Sales fell 3% for the year to the end of September 2003, but profits rose 47% to 2.2m. This year sales are predicted to be 42m.

"Sales are down, but profits are up - it's not about chasing top line it's about margin," said Watson.

Story by Barney Cox