The Belleek Pottery Group is seeking a major acquisition to transform it into a significant £100 million sterling (€158.5 million) player in the giftware/tabletop market, its chairman said yesterday.
Dr George Moore added: "We're looking for an acquisition in the range of £25 million to £50 million. Our goal is to be a £100 million company. To be a viable and strong company long term, size does matter."
A deal of this magnitude would more than double the size of the group which has a turnover of more than £30 million following its acquisition of Donegal Parian China last November. But organising and funding such a deal would present no major difficulties for the group, he said.
"We have the resources on the funding side. We have very strong management in the group and a business recipe. The funding side and the management side are not the greatest issues. The greatest issue is finding the quality type of company that would fit into our strategy," he said.
There was no Irish firm and little in the UK that matched its acquisition requirements.
"We would be looking at continental Europe and the US for that size of acquisition," he said. But he said an acquisition outside its traditional manufacturing base would not harm the group's image, citing the example of Waterford Wedgwood.
"You really do have to look beyond the home base. Waterford hasn't hurt the brand by manufacturing overseas because they have transcended the `Irishness' of the product. As long as it is good quality product, well placed in the right stores, people are going to buy that product," he said.
While he said Belleek had no plans to outsource, he said it was something that the group would examine in the longer term.
Despite increasing turnover to £30 million from £2 million over the past 10 years, Dr Moore said indigenous growth was never a real option for the group.
A downturn in the US economy might play into the firm's hands, said Dr Moore: "I think we would be opportunistic in a recession because we have the funds to make an acquisition. We're probably financially healthier than any other company. In fact, it would probably accelerate the plans."
