Belleek to buy Aynsley in £7m takeover

THE Belleek Pottery Group is to buy the Aynsley China company for a figure believed to be in the order of £7 million. The deal is expected to be concluded next week.

Aynsley, which was established over 200 years ago, is one of the world's best known giftware brands. Based in Stoke on Trent, its annual turnover is £15 million and it employs 450 people.

The deal will bring to £30 million the turnover of the Belleek Group, which also includes Galway Irish Crystal and Belleek Pottery in Co Fermanagh. The acquisition is being funded by internal resources and bank debt, according to Belleek's chairman, Dr George Moore.

Aynsley is currently profitable, making 6-7 per cent of turnover, which suggests annual profits of around £1 million.

Dr Moore declined to disclose the price Belleek had paid for Aynsley, but said the group was very pleased with the purchase. As well as being very strong in the UK, the company has a strong presence in Asia and the Pacific Rim. These are regions in which Galway and Belleek would be able to gain an entry into, he said.

Conversely, Aynsley is not as strong in the US as the Galway and Belleek operations.

Dr Moore said the acquisition was very significant and would establish the group as a major player in the giftware market worldwide. He said the trend has been for consolidation within the whole giftware market. Companies could not compete in the market unless they had critical mass, he added.

Dr Moore said that there would be considerable product development, distribution, sales and marketing capabilities available to each of the companies. However, he said the group had not fully decided on its strategy for Aynsley yet, but would announce it in due course.

Dr Moore said Belleek and Galway are performing exceptionally well. Belleek employs around 200 people and Galway employs around 100.

Galway Crystal was bought out of receivership in 1993. Its sales are growing at around 15 per cent per annum, according to Dr Moore. Its sales totalled around £5 million in the last year and gross profit margins are running at around 15 per cent.

Dr Moore added that the company was on the look out for more suitable acquisitions. He ruled out a possible stock market flotation in the near future, but said it could be considered at a future date, if the company felt it needed the equity for acquisitions.