ADAMS Food Ingredients (AFI) of Leek has bought the business and assets of rival firm FoodTec for £1.2m.
FoodTec, which is based in Crewe, is developer of products for the food manufacturing industry.
The business has been sold to AFI by Dairy Crest, which launched a strategic review on the future of the business in March.
AFI, like sister firm Adams Foods, is a subsidiary of the Irish Dairy Board.
It is a food ingredient and powder blending business which specialises in sourcing, blending and packing food ingredients for UK manufacturers and nutrition brands.
Gary Wells, managing director of AFI, said FoodTec would play an "integral role" in the company's future growth plans.
The two companies together employ more than 100 people.
He said: "This acquisition presents exciting opportunities to grow both the AFI and FoodTec businesses in collaboration with both existing and new customers across new products, technologies and processes.
"Through our shared synergies we can add significant value to our customers' businesses and we look forward to building strong relationships together.
"We will be reviewing the whole business over the next few months to establish opportunities, and both plants will stay open.
"This is a really positive move by the company and will help to safeguard jobs.
"The Irish Dairy Board have supported us in the acquisition which shows their confidence in the factory and the business."
Adams Food Ingredients moved to its present new state-of-the-art premises situated on the Barnfields Industrial Estate in Leek three years ago.
The building was constructed next to the Adams Foods cheese packaging plant in Sunnyhills Road.
The food ingredients factory had previously been based in Prince Street in Leek for several years.
The new Sunnyhills Road factory in Leek presently employs approximately 70 people.
FoodTec was originally founded in 1994 and previously known as Fayrefield Foodtec. It employs 32 people.