BOXMORE International, the Northern Ireland packaging group, has agreed final terms for the acquisition of the business and certain assets of Glaxo Print Services (GPS), a subsidiary of Glaxo Wellcome. GPS has a plant at Greenford, Middlesex, and is involved in printing and packaging for Glaxo.
The cash consideration, to paid in three instalments, is £6.3 million sterling. When the deal is completed on July 1st, £1.8 million will be paid. The balance of £4.5 million is payable in two equal instalments on the first and second anniversaries of completion.
Some £1 million of the consideration relates to the stock, plant and machinery. The balance is goodwill, so the purchase price represents a substantial premium to the net assets.
The business generated a turnover in the region of £7 million in the year to June 1996. No profit figures have been released but the deal should be earnings neutral this year and add around £500,000 to earnings next year, said Mr Mark Ennis, Boxmore's deputy managing director.
However, he stressed that the main benefits would come from a long term supply agreement with Glaxo Wellcome. While no figures for the expected enhanced business have been released, Boxmore is likely to see a big boost to its existing business with Glaxo.
The new acquisition will trade as Boxmore Healthcare Leaflets (Greenford). GPS employs 37 people who will now become Boxmore employees.
Boxmore, which has a plastics factory in Cavan, recorded a 57.5 per cent increase in pre tax profit to £11.1 million in 1995. Excluding acquisitions, the growth amounted to 31 per cent. Gearing amounted to a very modest 3 per cent. Further strong profit growth is expected for this year.
