The Aim-listed firm said it has acquired the entire share capital of Lighthouse Holdings, the parent company of the Lake District business and the UK's biggest manufacturer of home fragrances.
Wax Lyrical is both a wholesale and retailer, selling scented candles and reed diffusers to shops in both the UK and over 40 countries around the world.
Portmeirion said the brand with its strong "Made in Britain" pedigree was a strong strategic fit for the company and said it will use its customer base, websites to grow Wax Lyrical's sales.
Lawrence Bryan, chief executive, said: "We are proud to acquire a group delivering world class Made in Britain home fragrances. Together with our existing strong brands of Portmeirion, Spode, Royal Worcester and Pimpernel, these new brands will drive our business forward and offer significant opportunities for growth".
Lighthouse's accounts for 2015 show it generated £13.8m of revenues and a pre-tax profit of £2.1m in 2015. Portmeirion said it expects the acquisition to be earnings enhancing in the current year.
Wax Lyrical employs around 122 people in the Lake District, where it will continue to be based and run by managing director Joanne Barber.