Adare continues expansion with £12m acquisition

Printing company Adare has moved to expand its franchise of design, print and copy centres through the purchase of Kall Kwik Printing in the UK.

The group paid £10 million sterling (£12.1 million) for the privately-owned company, which is based in Middlesex. It already owns the Prontaprint franchise, which operates in the UK and Ireland.

The move leaves Adare as by far the largest operator in the UK's print-on-demand business, with a 13 per cent share of the market and employing 2,200 people in 400 centres. The next-largest distributed print network has approximately 30 outlets.

The move is part of Adare's strategy to develop its outsourcing and print-on-demand operations and to move away from the traditional heavy machinery printing business. As part of this, it says it is "actively seeking further acquisitions". Kall Kwik has 183 centres in the UK, currently managed by 60 people. The Kall Kwik network employs 1,100 people. It reported turnover of £70 million last year from its management and franchise activities.

According to a company statement released yesterday, Kall Kwik will be run autonomously by its own management team. Kall Kwik is a licensee of Kwik Kopy corporation of Houston, Texas, and intends to maintain that relationship. After a goodwill charge, the transaction is earnings neutral for Adare on the historic performance of Kall Kwik, "but is expected to be moderately earnings enhancing in the current year".

Prontaprint, Adare's existing operation, has 225 outlets in the UK and Ireland with a turnover of £56 million. It recently announced a programme of equipment upgrading and shop refitting with an investment programme of £2.3 million sterling over the next three years. Through its combined franchises, Adare will now employ over 2,200 people across more than 400 centres.