The AIM-listed print management group completed the buyout of Stream's parent HFS Projects on 31 December, in a deal that will take its group sales to around 70m and its headcount to more than 350.

TripleArc chief executive Jason Cromack said the deal made "perfect sense" for the group. "We can now provide our clients with a total end-to-end solution, including print procurement and management, and a complete range of fulfilment and logistics services," he said.

HFS Projects comprises Stream Direct Communications (formerly Brann Direct Communications) in Cirencester, acquired by HFS in April last year. It is about to be integrated with Swindon-based StreamGWC (formerly GWC), which HFS bought in November creating a 17m-turnover group. It will operate as an autonomous unit within TripleArc with its existing management team.

HFS chairman Mark Scanlon said it had always been his intention to create a medium-sized direct mail group that could eventually be merged with another player and that the acquisition of GWC had accelerated this plan.

"Our discussions with TripleArc identified an attractive and complementary range of services and market benefits that could be delivered economically to our respective clients. We felt comfortable selling to TripleArc because our cultures and business philosophies are similar," Scanlon said.

TripleArc will pay an initial consideration of 639,000 payable in TripleArc shares, and an additional 8m may become payable dependent upon the performance over HFS over the two-year period to 31 December 2006.

Scanlon also heads up Ringdark, the acquisition vehicle that bought Swindon-based Wace in November, and is chief executive of TP3 (formerly Thomas Potts).

Story by Lauretta Roberts