US multinational Cardinal Health has bought Dublin specialist packaging firm Venture Packaging.

The acquisition is the first in the Republic for the US healthcare products and services provider, which earlier this year finally pulled the plug on plans for a €114 million investment in the State.

In 2000, the company had announced plans for a base in Longford, creating 1,300 jobs.

Venture Packaging, founded in the 1980s, is a specialist printer, with 96 staff and operating in the pharmaceutical and computer software packaging areas.

Neither side would comment on the terms of the deal, although industry sources said that, on the basis of the US acquisition of Dublin rival Kartoncraft in 2002, Venture Packaging could have sold for more than €10 million.

The company's major shareholder is managing director Mr Pat Moore, who holds 43.5 per cent of the shares. Mr Michael Bell, Mr Francis Mooney and Richard Gayer each own 18-20 per cent.

The Dublin company has been trading strongly in the past two years. According to the latest accounts filed in Companies Office, it made a pre-tax profit of €657,555 on turnover of €14.8 million in the year to the end of April 2003. This was a rise of 55 per cent on the €364,249 made in 2002 despite a fall in turnover from almost €18 million.

Company sources said sales in the current year had risen again to €16 million with a sharp rise in profitability. The company is understood to have made around €1.3 million before tax this year.

Cardinal Health said the purchase fulfilled its need to secure greater packaging expertise in Europe. "Venture Packaging is a good fit for us with its strong track record of quality and range of blue-chip clients, paired with growth in the sectors it serves in Europe."