Both parties have entered into a non-binding agreement and the undisclosed deal will mean that Schawk will buy all of Winnetts' assets and subsidiary companies. This includes Winnetts' sites in Bristol, Salford and Antwerp.

Winnetts group managing director Nigel Parsons will remain with the company and there are currently no plans to rebrand. Both parties hope that the deal can be completed before the end of the year.
"The fit between the two companies is very strong," said Parsons. "We wanted to play on the world stage while Schawk wanted to have a European presence. It also makes us part of an immensely strong group."

Pre-press company Schawk has a presence in the US and Asian markets. It covers sectors including packaging, point of sale and advertising. Its shares are traded on the New York Stock Exchange, and the firm expects 2004 sales of 118m ($230m), up from 103m last year.

"This acquisition will give Schawk a significant presence in the UK and European markets, which are both important to our future growth," said Schawk president and chief executive David Schawk.

Speculation over the buyout had been rife for many months and follows the rebranding of Winnetts from Weir in August. The firm changed its name in a bid to avoid confusion in the market, with the Winnetts name used at its non-Leeds sites.

Prior to its rebranding the company had lost 11 staff to a rival Leeds-based pre-press firm Vermillion Graphics. Bill Weir has a financial interest in the company and also has a stake in Winnetts through a trust holding. He set up Weir in 1992 after leaving Wace.

Story by Philip Chadwick