Glen Dimplex has bought Goblin, the Tralee-based vacuum cleaner manufacturers, for an undisclosed figure. Goblin has been on the market for several months and Glen Dimplex had been strongly tipped as a buyer.
The deal involves Glen Dimplex buying the European Group arm of the US based Shop Vac Corporation, which owns the Kerry factory. Shop Vac manufactures and distributes a range of vacuum cleaners. Its annual turnover is £50 million and its brands include Goblin, AquaVac and FAM.
Glen Dimplex deputy chairman Mr Lochlann Quinn said yesterday that the acquisition would strengthen the company's position in that sector and would be complementary to its existing vacuum cleaner business, EIO based in Germany. Its goods are sold here under the Morphy Richards brand and cater mainly for the domestic market.
Mr Quinn said that approximately half of the Goblin brand's turnover was accounted for by the commercial and heavy industrial cleaning sector. He added that the Goblin operation was profitable, but may require some investment for new products.
Goblin employs 170 people in Kerry where it supplies a full range of floor care products in addition to its vacuum cleaners. It customers include Currys and Argos in Britain and it is said to sell its products through 5,000 outlets in Europe.
Last month Goblin announced 58 redundancies. Difficulties in European markets and the non-renewal of one order were thought to be the main reason for the job losses.
Goblin was bought originally by Shop Vac in 1984 as its main European manufacturing base. Shop VAC is owned by two US brothers, Jonathan and Matthew Miller.
In addition Glen Dimplex will acquire selling and distribution companies in England, France, Austria, Germany and the Netherlands. These companies export into 15 countries.
Glen Dimplex said the acquisition would mean the company would now have sales volumes in excess of 1.5 million units per annum in the European floor care market.
Glen Dimplex is a privately owned Irish group. It has an annual turnover of £500 million-plus and employs around 6,000 people worldwide. It has substantial electrical appliance manufacturing operations in Ireland, England, France., Germany and Canada.
