Arc Paper owner Tony Chutter and his other members of staff will join Premier's Southampton operation, with Chutter telling PrintWeek the move was a "good fit".
He said: "This is good news. Arc Paper and the Premier Paper Group have a similar ethos which is 100% commitment to customers.
"We also share the core values of local people offering local service and the development of long-standing relationships."
Premier Paper Group, which is the UK’s largest independent paper group, will continue to supply Arc customers, who Chutter said were happy with the move.
Graham Griffiths, managing director of The Premier Paper Group, added: "We are continuing our strategy of controlled growth, even in the current challenging market.
"I am delighted with the acquisition of Arc Paper, which will further strengthen our southern operations and fuel future investment in the region."
Premier Paper Group expands south of England operations with Arc Paper acquisition
Premier Paper Group has expanded its operations in the south of England with the acquisition of Dorset-based merchant Arc Paper.