PrintWeek revealed the firms were in talks just over two months ago.

The announcement follows several months of talks between the two parties, in a move which Scorpio is confident will increase its combined group turnover to 15m.

Scorpio chief executive Ian Whitfield announced he was eyeing up potential acquisitions in June this year, after increasing staffing levels by 25%.

He said the deal fitted perfectly with Scorpio's acquisition strategy, and described the deal as the first stage of a longer-term plan to expand the firm.

"For some time now we have wanted to expand strategically, and acquisition was one option."

He said he would let the deal for Senator settle, but would not rule out further acquisitions in the future.

Whitfield said Senator had good foundations that could be built upon, with an expansion of the business on the cards.

The acquisition will widen Leeds-based Scorpio's geographical coverage, and the plans are to double staffing levels at Senator to 100 employees.

A recruitment drive will be conducted in the next few months within the Leicester region.

The board at Scorpio believes this will help double Senator's sales within 18 months.

Whitfield said he would then look to relocate the expanded Senator to a nearby location.

Senator employs 54 staff at its 3,000m Leicester plant, with a turnover of around 2m.

Both Senator and Scorpio are strategic supplier alliance partners to Polestar.

Established in 1987 by founder and former chairman David Richmond, Scorpio employs more than 200 staff at its 7,432m plant in Leeds, and has a turnover of 10m.

Story by Andy Scott