"They are strong on the flexo side, where we are weak, while we are stronger on the litho side than they are," he said.
The companies will operate as separate operations, but will create a £32m-turnover bespoke envelope-manufacturing group.
Encore Direct produces up to 20m envelopes a week for customers, including Lloyds TSB, Tesco and Marks & Spencer.
The company has spent some £9m on equipment since its formation in 1995.
Gill said the acquisition had been made possible through the support of Encore’s customers. "They have enabled us to do this deal and remain competitive," he said.
The firm is only a week away from completing a 3,000m sq factory extension, which will double its floorspace to 6,000m sq.
Gill also gave a strong hint that the acquisition trail was far from over.
He said the company would definitely play a major role in the continuing consolidation of the European envelope-manufacturing market. "We are aware of who is out there and what state they are in." Envelope specialist LHM Print of Nottingham is currently in receivership.
Washington Envelopes employs 140 staff and has a turnover of £15m, while Encore Direct employs 150 and has a turnover of £17m.
Last December, Encore Direct was named the 36th fastest-growing company in the UK in the Sunday Times Fast Track 100. Gill is also a finalist in this year’s Sunday Times Entrepreneur of the Year competition.
Story by Andy Scott
