Northern Ireland packaging group, Boxmore International, is at an advanced stage of negotiations to buy the European pharmaceutical printed packaging operations of UK group, Rexam.
The consideration has not been disclosed but is understood to be a little under £15 million sterling (€22.7 million).
Chief executive Mr Mark Ennis said further acquisitions were planned. These would be in continental Europe and "further afield".
The operations in Brussels, Eastleigh in the UK and in Limerick being taken over by Boxmore have annual sales of some £13 million and operate at just above the break-even point. It is an important development for Boxmore which has been looking for further capacity to cope with its expanded business.
It has "won significant European orders and has been running out of physical capacity", said Mr Ennis. The group will now "transfer work" to the three production units. The British unit has a turnover of £7 million and under 90 employees, the Belgian plant generates sales of £3 million and employs 55, while the plant in Limerick has a turnover of over £2 million and employs over 40 people.
The plan, once the Irish regulatory authorities apporve the deal, will invest more than £1 million in the Limerick plant. It is "too small and needs critical mass", says Mr Ennis.
The acquisition will widen its geographical spread. Mr Ennis said this would be more effective in servicing its European customers.
Boxmore expects to return to long-term growth soon, despite exports being hit by sterling's strength. It recorded a drop in pre-tax profit to £13.6 million in 1998, down from £16.86 million in 1997.
