The Business Growth Fund has obtained a minority equity stake in York Mailing by investing GBP10 million into the York-based firm. The Business Growth Fund is a GBP2.50 billion fund specially designed to make use of investment opportunities in small and medium sized companies.

York Mailing, located on the borders of York, prints fliers, catalogues, ann other print material for a variety of retailers. The company's customer base includes retailers such as Tesco and Marks & Spencer.

The firm earned profits of GBP7.6 million last year on net sales of GBP75 million. The equity infusion will make it easy for York Mailing to finance new cutting edge printing presses to contend with higher volumes and to generate a war chest for acquisitions.

The Business Growth Fund is chaired by Sir Nigel Rudd, chairman of Invensys, and is run by Stephen Welton. Stephen Welton was chief executive of TV Travel Shop and was a former managing director of Barclays Private Equity in the UK.