Reed, who led the buyout of the core UK businesses of Photobition in 2002 to create Service Graphics, left the group earlier this month to pursue other business interests.
Cole, who was poached from Bezier where he spent the past two years as group operations director, joined last month and is now targeting increasing Service Graphics' market share.
He said: "Service Graphics is a fantastic business with enormous potential across the client portfolio and within the great people that work for the business.
"The focus now is on the growth of their talents, increasing market share and leveraging the wider St Ives group opportunity."
St Ives marketing director Rob Kelly, who was also involved in the management buyout of Photobition's UK businesses, said that the appointment of an external candidate would benefit the company.
He said: "The company's been privately-owned for a long time and it was felt that to bring somebody in from a related business, although not exactly the same, would bring a fresh approach to the company."
Lloyd Wigglesworth, group managing director of commercial products at St Ives, added: "Nick brings great experience and enthusiasm to the business along with a fresh approach that I have no doubt will lead Service Graphics into new markets and growth for the future.
"We are pleased to have attracted such a high-calibre individual who will play a wider role within St Ives to leverage the opportunity for Service Graphics arising from the other divisions of St Ives."
In addition to his most recent role with Bezier, Cole has previously worked at both Chesapeake and St Ives.
He said: "My first job was at St Ives many years ago and their enthusiasm began my passion for the industry. It is great to be back at St Ives and in a division with so much energy, opportunity and talent."