AN eco-friendly company has completed a merger that could double its turnover.

Ethical Superstore, established by Vic Morgan and Andy Redfern in 2003, has joined forces with Green Dot Guides, trading as Natural Collection, which was set up in Bath in 1999 to provide fair trade, organic and eco-friendly products.

The move is expected to help the online retailer, based on the Team Valley, in Gateshead, double its turnover to £6m by next year.

Ethical Superstore has become one of the largest online specialist ethical stores in the UK.

Since it opened, the business has increased its turnover by at least 50 per cent year-on-year and is continuing this growth To support its development, Ethical Superstore also received an investment of more than £400,000, led by NorthStar Equity Investors (NSEI), which also included investments from Rathbone Greenbank and a syndicate of business angels.

North-East law firm Muckle provided legal advice on both the merger and the investment, which is the fourth round of funding for the growth of Ethical Superstore from NSEI since 2006.

Vic Morgan, chief operating officer at Ethical Superstore, said: “We decided to set up the business six years ago after spotting a gap in the market for one central point for buying ethical products online.

“We are delighted to be working with Natural Collection, one of the biggest players in the specialist eco shop sector.

“Integrating our resources will allow the combined business to further broaden product range and customer base, making us more efficient and in a position to target new markets in the long term.”

Ian Richards, portfolio manager at NSEI, said: “We have supported this business since its inception and are delighted to do so again.

“The merger provides the combined business with the ideal opportunity to demonstrate real growth in the ethical and fair trade markets.”

Nicola Loose, an associate within the corporate finance team at Muckle, said: “Our team is committed to supporting businesses during periods of growth and has worked closely with Ethical Superstore throughout its evolution from a small business start-up six years ago.

“We provided specialist legal advice to Ethical Superstore throughout the merger and investment, specifically regarding how the firm could work as a combined business with Natural Collection while still trading separately and meeting the requirements of its investors.

“This merger brings together two complementary companies in an exciting sector and we look forward to working with the management team at Ethical Superstore as the business continues to develop in the future.”