A record year for the big buys in Irish businesses

THIS was a record year for mergers and acquisitions by Irish companies. The reported number of acquisitions over the past year was 146, compared to 104 last year, an increase of 40 per cent, according to Chapman Flood corporate finance.

The company calculates that the value of these acquisitions rose to over £2,400 million this year, compared to £944 million in 1995.

Mr David Chapman, managing partner of Chapman Flood, said the high level of acquisition activity was expected to continue into 1997, given the continued favourable economic climate and the ready availability of funds.

In terms of the location of acquisitions, Ireland and Britain accounted for 101 deals, of which 57 were in Ireland. A further 21 acquisitions were made in the US and 18 elsewhere in Europe.

In terms of value, however, the most money was spent on acquisitions in the US and Britain which accounted for spending of almost £1 billion, or 82 per cent of total, between them.

A number of Irish companies announced their largest ever acquisitions in 1996 - these included Bank of Ireland, CRH, Independent Newspapers and First National Building Society.

The deal of the year was made by Bank of Ireland, which announced its biggest ever acquisition, when it revealed a £600 million deal to take over the ninth largest British building society, Bristol and West.

While the deal will not be completed until the middle of 1997, it meant the financial sector accounted for £800 million of the total acquisitions of the year, according to Chapman Flood.

The construction and property sectors were the most acquisitive in terms of the number of deals, accounting for 49 purchases. CRH was active on the acquisition front again in 1996, completing its biggest ever acquisition when it bought Tilcon in the US for £213 million.

In property, Green was active acquiring property in the UK market, but the biggest move was Treasury Holdings' £90 million acquisition of a UK portfolio.

Elsewhere, DCC was active mopping up minority stakes in the companies within its portfolio. Its largest move was the £28.5 million it paid for 40 per cent of Flogas.

The food companies were in consolidating mode and the number of deals fell. The biggest acquisition was Kerry's acquisition of Ciprial in France for £54 million.