KELVINSIDE Group, the print and packaging vehicle set up last year by former Inishtech managing director, Mr Brian Molloy, has made its third acquisition.
Hilo Offset, an Essex commercial printing company, has been purchased for more than £1 million sterling cash. Kelvinside had now spent £3 million of its £5 million equity investment and the remaining £2 million should be spent on further acquisitions before the end of the year, said Mr Molloy.
Hilo, based in Colchester, also provides reprographic services and was founded in 1967. The three senior executives who were also major shareholders - Mr Peter Rowe, Mr Brian Adams and Mr Paul Scott - are to remain with the company under a three-year service agreement. There is an "earnout" agreement which would involve the payment of a further £250,000 sterling.
Hilo recently embarked on a major development programme involving the delivery of a five-colour Heidelberg printing press. This, said Mr Molloy, would supplement Hilo's existing print capacity.
Hilo generated sales of £2 million last year, up 15 per cent on the previous year. Mr Molloy said growth has been "pretty good" over the past four to five years. It generated pretax profit of £250,000. Borrowings are a "couple of hundred thousand" and net assets amount to £800,000.
Kelvinside said the acquisition would complement the geographic coverage and product range of its other acquisitions.
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