Summerhall, which specialises in printing for the financial sector, was bought out of administration from administrators Zolfo Cooper by Stewarts yesterday afternoon.

Stewarts managing director Terry O'Hare, who bought the business in an MBO in 2004 said: "Summerhall is a provider of high-quality solutions and boasts some good people and offers a good product.

"The business had experienced some uncertain trading and this was an opportunity to save a well-known name in Scottish print."

The business will add £12m to Stewarts' current £6.5m turnover, as well as two more sites.

O'Hare said plans for the integration of the business had not been completed but that the company had entered into consultation with unions and staff over possible job losses as a result of the deal.

Stewarts has 73 employees, while 135 staff work for Summerhall. All staff have been transferred following the deal, and it is unclear at this stage how many jobs will be lost and across how many sites the combined company will operate.

In March this year, Stewarts moved to a purpose-built 3,500sqm industrial site in Livingston, near Edinburgh.

O'Hare said: "There will be consolidation, we need to drive costs out of the business.

"There is now the opportunity to create a much stronger business and we have a robust business plan for the combined company moving forward. There are very many jobs and families depending on this being a success."

He added that the Summerhall name will be retained but no directors of the company are in any way associated with Stewarts.