DCC's business Laleham Health & Beauty, which has production facilities in Alton, Hampshire, will be combined with UPL in Kirkham, Lancashire to create a business with sales of more than £75m and 500 staff.
The combination will create a full-service contract manufacturer of branded beauty and healthcare products. Both sites will remain open and form the basis for future growth in the business.
UPL founder and managing director Mike Peters is to stay on for a nine-month transition period, after which he is to pursue other interests. UPL general manager Joanne Senior and director Damian Stroud are to stay with the business and continue to run the Kirkham operation.
Managing director Tim O'Connor said: "I am delighted that we have been able to reach agreement with Mike Peters to acquire this business.
"The combined strength of our enlarged business will make us one of the largest players in the UK market, enabling us to offer our customers a broader range of services and will provide us with a strong platform for growth in Europe."
Sales and business development director Sarah Fernihough added: "I am excited to be part of another chapter in British contract manufacturing, where these two established businesses can combine a wealth of expertise in the beauty, pharmaceutical and nutritional sectors to support our customers with innovative products to meet the ever increasing levels of consumer expectations."
