Tayto looks set to bring tasty deal for Beatrice

Another multinational no doubt looking for a rich price for its Irish operations is Beatrice International, which is effectively looking for a buyer for its hugely successful Tayto crisps operation. Everything seems to be going nicely for Tayto, judging by the recent brief comment with Beatrice's third-quarter figures.

Without giving an exact figure on how well Tayto has performed, Beatrice cited the Irish operations as one of the main factors in its own growth. Tayto's sales were up almost 10 per cent in the third quarter, capitalising on the booming economy and the apparently insatiable Irish appetite for snack foods.

Tayto's most recent accounts filed with the Companies Registration Office - for 1996 - showed sales of £33.5 million and profits of £7.6 million. Those are the sort of margins most companies can only drool at. For 1997 and the current year, it seems reasonable to assume that profit growth has at least matched sales and that would suggest profits in the current year of close on £10 million.

A figure of £100 million has been suggested for Tayto, but Beatrice is likely to look for a lot more, especially given the strength of the Tayto brand name. Children still ask for "a package of Tayto, not for "a package of crisps" - that's some name recognition.

All sorts of names have been mooted as potential buyers, including IAWS and DCC from the home market and PepsiCo from overseas. One thing seems certain, Beatrice will hold out for a strong price and can afford to wait until somebody writes the right cheque - and that will be well north of £100 million.