INDUSTRIAL Print Group (IPG), the Bray based screen printer and supplier of labelling products, has been acquired by British publicly quoted company, Jarvis Porter Group, for up to £10.25 million.
The shareholders of IPG were paid £7 million on completion. A second payment of £590,000 is payable on completion of IPG's audited accounts to December 31st, 1997. Further deferred considerations, bringing the total up to £10.25 million, will be paid if profits of not less than £1.8 million are achieved.
IPG generated sales of £6.65 million - 32 per cent are generated in Britain, Germany, Holland, France, Portugal and the US - and profits before exceptional items of £800,000 last year. Net assets were £3.3 million.
The biggest beneficiary will be chief executive, Mr Gerard Casey, who founded IPG in 1977 and is the largest shareholder. He has entered into a consultancy arrangement with Jarvis Porter. Mr Casey was unavailable for comment last night.
Other beneficiaries will be investors in the Third Riada Business Expansion Fund who have a 16 per cent stake. Riada has noted that the fund's investment in IPG will be realised at 4.8 times its original costs. And as the highest tax rate in 1991 was 53 per cent, the "realisation represents approximately 10 times the aftertax cost of the investment", Riada added.
IPG now employs around 130 people, mostly in Bray. It also has a plant in Drogheda, following the acquisition of Broin Print, four years ago. Mr Chris Byrne, the founder of Broin, is operations director of IPG and a large minority shareholder in IPG. He has entered into a service agreement with Jarvis Porter as managing director of IPG.
Mr John Doris, director of Riada Corporate Finance, said the sale of IPG means that the Third Riada Business Expansion Fund is set to outperform the Second Riada Business Expansion Fund where investors realised £1.35 per £1 invested. Noting that the Second BES Fund was the top performing fund of its year, the "Third Riada BES Fund will repeat that performance", he said.
IPG will become part of Jarvis Porter's electronics division and together with Donprint, acquired by Jarvis Porter in December 1994, will create the largest supplier to the British and Irish electronics labelling markets.
Jarvis Porter increased its sales by 5 per cent to £95.4 million sterling in the year ended February 28th 1997. Pretax profit fell from £14.1 million to £12.4 million.
