Leamington Spa-based aerospace group Umeco yesterday paid £3 million for George Cole Technologies.
The firm, which trades as Primco, is privately owned and based in Manchester.
It is a composite materials business that develops and manufactures a range of phenolic resin based pre-impregnated materials used in aerospace, defence, industrial, medical and sporting applications.
Customers include Airbus. Umeco said the 40-year-old company was "highly complementary" to its Advanced Composites Group subsidiary.
In the year ended October 31 Primco had sales of £5.4 million.
Umeco announced in September the completion of its £59.5 million acquisition of JD Lincoln, a composites business based in California.
Similarly to Primco, JDL formulates and manufactures a range of phenolic resin based pre-pregs for aerospace, marine, medical, sporting, automotive and other extreme environment applications. Products go into the Boeing 787 and the Airbus 380.
Clive Snowdon, Umeco chief executive, said: "The Primco acquisition further illustrates the progress Umeco has achieved in delivering complementary growth to the group both in the UK and overseas.
"It will enable us to offer our existing customers a wider range of material technologies, whilst allowing ACG to further consolidate its market leading position, in a continuously evolving composite arena.
"Primco offers good long term value-creating growth and we look forward to realising operating synergies as we integrate it into our existing business."
Umeco recently announced a five-year extension to 2015 of a supply deal with Rolls-Royce.
More than 70 per cent of Umeco's business is derived from the civil aerospace market, Boeing and Airbus in particular.
Pre-tax profits for the six months to the end of September came in at £10.4 million, up 16.9 per cent on the same period last year.
Revenue increased by 11.6 per cent to £176.7 million.