AN American firm has paid $6million cash for a Blackburn CD maker.

Deluxe Global Media Services Blackburn Ltd, based in Philips Road, Whitebirk, has been taken over by Atlanta-based Glenayre Technologies, Inc, under its Entertainment Distribution Company (EDC) arm.

Deluxe is the largest CD replicator in the UK and serves well known customers including Universal Music Group and Warner Music Group.

Recently the firm printed 350,000 copies of X Factor winner Shayne Ward's Christmas single, That's My Goal.

Now the American company expects to make $4million a year from the Blackburn firm.

Jim Caparro, president and chief executive of EDC, said: "Blackburn is a strategic acquisition that provides us with market leading and profitable operations in one of Europe's largest music markets.

"This transaction increases our customer base, expands our geographic reach and allows us to further capitalise on our ten year agreement with our largest client, Universal Music, by accelerating the reversion of their UK volumes.

"In addition, it allows us to avoid capital expenditures in our Hanover, Germany, location that would have been required to accommodate this volume in 2007.

"We expect Blackburn will generate annual cash flows from operations in excess of $4million with margins that are slightly less than EDC's as a result of its product mix."

Delux, a company owned by the Rank Group plc, was founded in 1980 and has more than 400 employees.