Led by chairman Sean Sullivan and finance director Andy Leonard-Myers, the buyout gives Pinnacle and label Windsong “the opportunity to provide more flexible third party logistics services for smaller organisations in the same marketplace,” says a statement from the firm.

It also plans to expand its offerings “to cover marketing and promotions support, strengthen its digital services and extend reach into European markets.”

Meanwhile former parent company Arvato is to focus on its entertainment services business, including recorded media companies and other technology and healthcare markets.

“The team at Windsong/Pinnacle has worked hard to build and retain its unique position in the marketplace handling an enormous range of music, DVD and games,” said chairman Sean Sullivan. “We are excited at the prospect of returning to independence, and operating a business that is nimble enough to respond to increasingly complex market conditions and client needs.”

Matthias Mierisch, Chairman and CEO of Arvato services UK and Ireland, added: “As an independent player, Windsong/Pinnacle will be in a stronger position to adapt and capitalise on opportunities going forward. The move also allows Arvato to focus on dealing exclusively with large media businesses and strengthening our services for these clients. We will also continue to grow our logistics services specifically in hi-tech and healthcare sectors.”