INDUSTRIAL holding group James Crean has taken another step in its strategy of concentrating on its core business. It has acquired the OLC electrical wholesaling business in Britain for £14.3 million sterling.

Crean shares put in a strong performance after the acquisition was announced, with investors pleased the company is building up its core businesses. The price is seen as reasonable, given the snug fit between OLC and Crean's existing Wade business. The shares dealt up 8p to 243p in sizeable trading.

While Crean is building up its core businesses through acquisition, it is understood that the group expects to sell its 28 per cent stake in the United Beverages drinks distribution group within the next few months. JCM Distribution, which is the sole distributor of Mars confectionery products in Ireland, is also expected to be sold shortly.

Crean has already increased its stake in Inishtech from 71 per cent to 93 per cent and will make a formal offer shortly to buy out the remaining minority shares. Crean has said, however, that it intends to sell Inishtech as soon as possible after getting full control. Sources close to the company said selling Inishtech as a wholly owned subsidiary should be substantially easier than finding buyers for a 71 per cent owned public company.

Crean's shareholders will be keen to see the final sale of Inishtech and the other non core businesses as quickly as possible, as otherwise Crean will face high gearing. Sources close to Crean dispute whether the £35 million of loan stock should be treated as debt, but most in the market do treat it as debt and include it in their calculations when working out Crean's gearing.

Assuming the £35 million is treated as debt, then Crean's total debt after yesterday's acquisition is in the order of £100 million, a gearing of close on 1,00 per cent. Market sources believe that gearing cannot be sustained anything other than a short period. Rapid disposals of Inishtech, the UBL stake and JCM are expected.

The OLC electrical wholesaling business is being acquired for £11.3 million sterling plus assumed debt of £3 million sterling. The consideration is being met through £8.5 million sterling in cash and loan notes of £2.8 million sterling.

The OLC business has a book value of £4.3 million sterling £7 million sterling of goodwill be written off. Crean writes' off goodwill for its subsidiaries over 50 years.

Figures for 1995 for Crean's existing Wade electrical business are not yet available, but in 1994 Wade had sales of £46.2 million sterling. Crean says that the combined turnover this year will be over £70 million sterling.