William Sinclair Holdings has bought Joseph Metcalf, who supplies the Gem brand of horticultural lines, for £2.95m cash.
Chief executive Bernard Burns said the addition of the Gem brand will allow Sinclair to flourish in three mains areas - efficiency in manufacturing and production, the development of environmental lines, and enhancement of both brands.
"With the synergies that exist from the combined Joseph Metcalf business, further cost savings across the enlarged group are expected to be generated," said Bernard Burns.
The company plans to introduce the same cost-saving measures to Joseph Metcalf that have turn around William Sinclair over the last two years.
For the 10 months to June 30 Joseph Metcalf reported a net loss of £0.18m on turnover of £8.8m.
William Sinclair expects the purchase of Joseph Metcalf to add to its earnings for the 15 months to Sept 30, which is the end of Sinclair's fiscal year.