Sterling Financial Print has sold its manufacturing operation to DG3 Europe, in a deal that will result in DG3 creating one of the largest digital print centres in the country. DG3 will take on 59 staff, associated equipment, and some ￡7m of additional print turnover, while Sterling will focus on growing its specialist services for the financial sector including virtual data rooms and typesetting. Both companies are London-based and used to compete in equity research printing prior to this week’s sale deal.

"The opportunity came up and DG3 was a perfect fit," said Sterling chief executive Geoff Keating. "They are committed to manufacturing globally, whereas we didn’t have worldwide operations."

As part of the deal Sterling has agreed a five-year sole supplier deal with DG3 for litho and digital print. "It’s useful for us to have access to their global facilities," Keating added.

The remaining Sterling business has turnover of around ￡9m and employs 86 staff. Keating said its virtual data room service was proving a big growth area, and the firm plans to expand its use in Asian and American financial centres. The terms of the deal were undisclosed, and the sale is subject to consultation. DG3 Europe will take on 59 staff and its enlarged business will have sales of circa ￡24m.

DG3 Europe chairman Peter Furlonge said the group planned to create separate digital and litho centres of excellence as a result of the purchase, and described its print platform as "unrivalled".

"We will create a litho centre of excellence at Sterling’s Gillingham site and move our litho presses there, and consolidate digital printing at Canary Wharf," he said. "It adds a chunk of business for us and is a great win."

DG3 plans to relocate its eight- and four-colour B1 presses to the Kent site, which currently houses four multi-colour B1 and B2 presses along with associated finishing kit. Sterling’s digital print setup, including two Xerox iGens and two Nuveras as well as DocuTech kit, will be moved from Liverpool Street to Canary Wharf. DG3 already runs two iGens of its own at the site, alongside two HP Indigos, two Nuveras, an IBM 4100 and DocuTechs.

"A lot of the work we do is very time sensitive and this gives us a huge amount of capacity. We are managing large projects for clients that are not just about price," Furlonge added.

Sterling founder John McCormick will also join DG3 in a business development role as a result of the deal.

DG3 group president and chief executive Thomas Saggiomo said the group was still on the lookout for further acquisitions.