The British packaging company Field Group plans to substantially expand the operations of Avery Label, which Field has acquired from a management-venture capital group for an initial £6.05 million. A further £2.75 million is to be paid in a profit-related earn-out over the next two years.
Field director, Mr Jim Tims, told The Irish Times that the group expects Avery to grow at an annual rate of 9 per cent a year. Avery, which manufactures self-adhesive labels for the pharmaceutical and healthcare sectors, had sales of £9.1 million last year and pre-tax profits of £700,000 after an exceptional charge of £200,000.
Avery was the subject of a management buyout in 1994 headed by the current chief executive Mr Declan Hynes and backed by Phildrew Ventures, the venture capital arm of UBS Phillips & Drew. The group has been acquired debt-free by Field and has net assets of £2.8 million. Mr Tims said the entire management team had agreed to remain on with Avery under its new ownership.
The management have also been given a strong inducement to grow the company as a further £2.75 million will be paid in an earn-out, if certain profit targets over the next 21 months are reached.
However, it is the burgeoning pharmaceutical and healthcare industries which was the main attraction of the acquisition for Field, said Mr Tims, who added that it was "extremely fortunate" that the Field takeover of Avery coincided with the Boston Scientific expansion which creates the biggest healthcare manufacturer in Ireland.
