Solihull-based Epwin Group has completed the acquisition of Wrexham firm Vannplastic for a fee of £5.2m.
Vannplastic Ltd trades as Ecodek and was founded in 2002 as a manufacturer of Wood Plastic Composite (WPC), a hardwood substitute for balconies and outdoor decking.
The acquisition is in line with Epwin's stated strategy to broaden its range of low maintenance building products.
Jon Bednall, chief executive officer of Epwin Group, said: "I am delighted to announce the acquisition of Ecodek and welcome the team there to the group.
"Ecodek adds to the group's range of low maintenance building products and brings exciting new materials technologies into the group as well as real developmental expertise.
"The acquisition represents an important first step in the development of the group and is expected to enhance earnings from 2016."
Alex Collins, managing director of Vannplastic, added: "Joining Epwin Group will enable us to develop and expand our product range and take full advantage of the exciting opportunities for our innovative materials.
"We are proud of our product and dedicated workforce. Becoming part of Epwin Group is excellent news for our employees and customers alike and we look forward to the future with confidence and enthusiasm."
The initial consideration of £5.2m, is comprised of £3.64m in cash and £1.56m in the form of 1,166,817 Epwin shares at a price of 133.7p per share.