Harry Potter printer may acquire other companies
St Ives may consider acquisitions in a bid to fend off the attentions of interested parties
Printing company St Ives is looking to protect itself from a possible
takeover bid by considering acquisitions of its own.
The printing company is said to be mulling over its options, as overcapacity
in the sector has caused a slump in annual revenues and underlying profits.
According to analysts, St Ives – printer of the Harry Potter books, The
Economist, Accountancy Age and other products such as Microsoft Xbox game
inserts – is likely to be a prime target for venture capitalists and is seeking
to defend its position.
Chairman Miles Elmley reported to the FT that the company would be
considering acquisitions to the tune of about £50m, which would be funded by
Elmley added that the acquisitions route was preferred, because the only
other way to grow in a saturated market would be for St Ives to take work from
other competitors, leading to further price competition.