Launahurst Ltd, which traded as Launa Windows, went into administration last month with 60 of its 70 staff made redundant immediately.
The family company, based in Newton Abbot, began in 1974 making uPVC windows, conservatories and doors.
Administrator Begbies Traynor said Bristol-based Britannia Windows had bought the company as a going concern.
Britannia Windows, which has bought the whole business including the buildings and machinery, said it had been looking to expand into Devon and Cornwall.
Launahurst was placed into administration at the request of its directors who said that despite having a turnover of £5m in 2011, the company fell victim to the recession and a reduction in the disposable income of its core customer base.