by Trevor Sturgess

No jobs will be lost after the takeover of a Medway firm, its new German owner has pledged.

Line Packaging and Display, a retail display business based in Gillingham, has been bought by STI Group, a major European player in high quality packaging, for an undisclosed sum.

The Gillingham firm, founded in 1979 and with a £15.75m turnover, employs about 100 people. STI has said there will be no job losses as a result of the year.

It added that the move expanded the German group's UK reach and its ability to provide customers with a global service.

Geoff Down, Line Packaging and Display's founder, will remain with the business for up to a year before retirement.

He said: "The decision to move the business into the STI Group was driven by market needs for an extended product portfolio as well as an international dimension which can be now offered under one roof."

Dr Tom Giessler, STI Group's chief financial officer, said the acquisition strengthened the Group's capability and expertise in the European display sector and would substantially grow the business in the UK market.

"Line Packaging and Display is a perfect member of the STI Group as it is remarkably strong in display design and manufacturing," he said. "Its strengths, such as flexibility and product portfolio represent an ideal fit for the STI Group."

Both STI Group and Line Packaging and Display operate in similar markets, primarily well-known international and domestic brands in sectors such as cosmetics, food, drinks, confectionery and Home Entertainment. Clients include Cadbury, Procter & Gamble, Warner Brothers and Nestle.

The STI Group employs 2,000 staff and operates 14 production sites in Germany, Australia, the Czech Republic, Hungary, Poland, Romania and the UK. It has a turnover of around £230m.