The three-strong team leading the business are Peter Bassett, managing director, Keith Henderson, technical director and Clive Hodges, finance director. They have transferred all 114 staff of the food-testing and pesticides-residue analysis concern as part of the deal.

The move comes five years after Adas was privatised and is in line with subsequent strategy reviews at the company which have overseen the creation of the division for potential sale.

'This gives us the best of stability and change,' explained Bassett. 'It is comforting to staff and customers in that it is business as usual, but it also gives us positive opportunities to develop further in different areas for our customers.' Key accounts at Direct Laboratories include Defra, the Food Standards Agency and the Rural Payments Agency. The company also provides services for retail clients such as Marks & Spencer, Safeway and Sainsbury's.

'With public concerns over food safety and quality issues continuing to exert major influence on the industry, there is a growing need for companies throughout the food supply chain to have an active partnership with their laboratory service provider to access key issues affecting their business,' said Bassett. 'With our new structure, we will capitalise on our extensive experience and reputation whilst extending our capability to provide even greater customer service and added value.' Adas ceo Stephen Collier has welcomed the move: 'We look forward to maintaining our strong links and developing further opportunities together while working with them as our preferred sub-contractor.' Direct Laboratories plans to 'plug the gaps in its capabilities' and enhance customer service through the use of web technologies.