YEOMAN International has bought the business and assets of Tipperary Crystal from the receiver, Mr John McStay, for an undisclosed price.
Yeoman, which put the receiver into the crystal company last week, said it intends to provide the necessary funding for the long term growth and development of Tipperary Crystal. It said a substantial capital expenditure programme is planned. Yeoman has agreed that the 81 employees of Tipperary Crystal will remain in place under existing employment terms.
The takeover is part of Yeoman's new business strategy - to take long term private equity investments in companies which can benefit from its cash and financial management skills.
In recent weeks Yeoman took over debts of about £1 million owed to AIB by Tipperary. On October 11th the Shannon based financial services group appointed a receiver to the glass company. On October 14th, the receiver Mr McStay advertised the sale of the business as a going concern and said he wanted a speedy sale because "a number of contracts are in progress".
A number of potential purchasers approached the receiver and some visited the Tipperary plant. Asked if Yeoman had an advantage over other potential buyers in the discussions on the sale, a spokesman insisted that the receiver had to get the best price for the assets. "Yeoman made a bid for the business and assets and reached agreement with the receiver in the last 24 hours," he said.
Mr McStay said he was "very satisfied" with the price and the terms agreed. He declined to discuss the price. But it is understood that the receiver gave potential purchasers his "asking price" for the operations and that a least one potential purchaser made a bid considerably below the asking price.
It is further understood that Yeoman was in discussions with Tipperary before the receiver was appointed and that other potential buyers were advised that there was a buyer who was well advanced in negotiations on a possible deal.
Earlier this week three of the original investors in Tipperary were refused an injunction in the High Court preventing the receiver from selling the company's assets.
Based in Carrick on Suir, Tipperary Crystal was set up in 1988 by six people including some former Waterford Glass workers. The company, which produces mouth blown hand cut crystal, has an annual turnover of about £2.5 million. Sources said the underlying business was profitable but the company was carrying large debts and needed to invest in upgrading machinery and facilities.
Yeoman International was set up by Mr Paul Coulson as a leasing operation. The cash rich company is looking for suitable investment opportunities.
