Irish acquisitions reach record £1.7bn

ACQUISITIONS involving Irish companies reached a record level of about £1.7 billion for the first five months of 1996.

Though large acquisitions by Bank of Ireland and Elan boosted the latest figures, deals in the January to May period show continuing expansion by CRH and more mopping up of minority interests in its subsidiaries by DCC.

Bank of Ireland and Elan accounted for just under 60 per cent of the value of all the acquisitions over the period. Britain and the US remain the main locations for investments by Irish companies. Investments in Britain accounted for about 40 per cent of all acquisition activity by Irish owned or Irish based operations in the first five months.

The US was the second largest location for investment, accounting for about 30 per cent of funds invested.

Investments within Ireland through management buy outs, consolidations and the DCC mopping up operation accounted for about 5 per cent of acquisitions by Irish owned or Irish based companies.

Within the EU there were acquisitions in France (£61 million), the Netherlands (£15 million), Portugal (£12 million), Italy (£7.5 million), Belgium (£6 million) and Germany (£5.2 million). There was one acquisition in Poland.

The biggest acquisition of the period was announced in April. Bank of Ireland announced that it would pay £600 million sterling for Bristol and West, the ninth largest building society in Britain.

The acquisition, aimed at expanding the geographic spread of its earnings and at bringing scale and focus to its operations in the British market, will not be completed until mid 1997.

Elan expects to complete its £406 million acquisition of Athena Neurosciences at the end of the month. Elan aims to develop into a fully integrated drugs company that also discovers develops and markets its own drugs.

CRH under the direction of chief executive, Mr Don Godson continued its expansion in the US and Europe. Over the first five months the buildings materials group spent just under £100 million in a series of acquisitions.

Most of LRH's latest investment was in the US where the company spent just under £74 million.

Other acquisitions included a 50 per cent stake in French builders merchants Matenaux Services for £7 million and the £12 million purchase of two Dutch builders' merchants. This month the company announced the £4.8 million sterling acquisition of the building products division of Hawtin in Britain.

DCC moved along implementing its policy of mopping up minority interests in its subsidiaries. In the last five months, the company spent £35 million.

It bought the 40 per cent of Flogas it did not already own for £28.5 million and an additional 12.3 per cent of Printech for £3.4 million.

The company acquired the outstanding 11 per cent of Emo Oil and the outstanding 12 per cent of Fannin for a total of £3 million.

Allied Irish Banks continued to expand in the US. It paid £53 million for First Washington Bancorp.

AIB also paid £38 million for 20 per cent of WBK Bank in Poland bringing its, holding to 36.3 per cent.

There was some surprise in the market when the Kerry Group bought Ciprial, a fruit based food ingredients operation in France, and Italy. Kerry was expected to concentrate on consolidating large earlier acquisitions such as DCA.

Chief executive Mr Den is Brosnan has said he would have preferred if Ciprial came on the market in late 1996 or 1997, but once it did go on the market, Kerry had to act quickly. Kerry paid £54 million for the operation which is seen as a prime strategic investment.

Green Property expanded its portfolio in Britain with the £37 million sterling acquisition of United Friendly Properties.

Adare made a major move with its £23 million sterling acquisition of British printing company Prontaprint.