A Washington envelope company has sold half its business to a North Yorkshire manufacturer, in a move which the British company hopes will strengthen its businesses.

Silent partner at Washington Envelopes Trevor Jenkins has retired and sold his stake in the company to Tony Gill, from Encore Direct, in York, which also produces envelopes.

Tony Gill, recently announced as the winner of the Business Products award at the Entrepreneur of the Year 2002, and his management team will join David McGuire, managing director of Washington, and Julia Corkhill, sales director, on the board.

The two companies are to work in tandem in the same market. Washington Envelopes specialises in high-tech flexographic printing while Encore Direct is re-nowned in the industry for producing lithographic printed envelopes.

Both firms have ambitious expansion plans to conquer the lucrative direct marketing sector.

Washington Envel-opes has said the change will only be at board level and there are no job cuts on the horizon. The companies will operate as separate operations, retaining their own identities, but will create a £32m turnover as an envelope manufacturing group.

Washington Envel-opes employs 140 staff and has a turnover of £15m, while Encore Direct employs 150 staff and has a turnover of £17m.