Adare e.g.m. approves £23m purchase of Prontaprint

SHAREHOLDERS in Adare have approved the £23 million sterling acquisition of the British printing company, Prontaprint.

The deal, which was approved at an extraordinary general meeting in Dublin yesterday, has yet to go before Prontaprint's shareholders.

However, this should be a formality as Adare already holds acceptances in respect of 96.5 per cent of the British company's shares.

Adare's finance director, Mr Peter Lynch told the meeting that the acquisition "represents good value from day one".

He said the board believed Prontaprint would continue to grow by 20 per cent a year as it had done for the last three years. He added that it was hoped to boost annual turnover at each outlet from £200,000 to between £300,000 and £400,00.

Although the deal leaves the company "highly geared", Mr Lynch told shareholders that gearing would "come down rapidly" over the next 12 months.

Adare was still interested in acquisitions but this was probably the last deal of scale that could be put together without returning to shareholders for funds.