Buyout deal doubles printer's workforce; In association with RBS.

Byline: By Chris Knox

A PRINTING company has solved its recruitment problems by buying one of its main rivals for a seven-figure sum.

Newcastle-based Imprint Creative Print Solutions (ICPS) has doubled its workforce from 35 to 70 following the acquisition of Dunston-based Perfect Screen Print.

ICPS, which has seen its sales increase by 60% over the last four years, says the deal will push revenues up from pounds 5.6m to pounds 7m over two years.

Perfect Screen Print will retain its trading name as well as taking on the lithographic work of ICPS, giving ICPS the capacity to increase its digital printing output.

ICPS said the merger solves the recruitment problems it has experienced in recent years, which have seen it struggling to expand its screen-printing operations due to a lack of candidates skilled in the traditional printing technique.

It also increases ICPS's factory space from 20,000 sq ft to 35,000 sq ft, which includes three factory units in Armstrong Industrial Estate as well as the new unit in Dunston. ICPS chief executive Jim Newton said: "This deal marks a landmark in the development of ICPS, particularly as it provides the critical mass required to move forward and grow in what is a highly competitive industry.

"It also gives the group an important skills boost. Getting the right people is crucial for any printer looking to expand, but finding them is never easy.

"Perfect Screen Print solves this problem instantly as we've doubled our workforce overnight with high quality individuals. There are few screen-printers out there, but this deal will now allow us to expand in this area."

ICPS, founded in 1981 and specialising in large-scale printing work for a number of high-street outlets and garden centres, said that the merger would instantly increase its turnover to over pounds 6m. Perfect Screen Print was founded by husband and wife team Shaun and Vickie Wood in 1990, with both being retained as a business consultant and administration assistant respectively. The deal was financed by a loan from Lloyds TSB, which includes a proportion of working capital for ICPS to invest in new equipment. Andrew Bentley, regional manager at Lloyds TSB Commercial Finance, said: "The digital print sector requires significant investment in new technology just to stand still. This transaction makes a great deal of sense for ICPS on a number of levels as it enables the business to immediately increase sales, while providing exciting growth opportunity."

Despite a general move towards digital printing in the sector, Mr Newton said that there was still a place for screen-printing. He said: "Despite the digital revolution, there is no doubt that there is still a market for screen-printing, especially for larger jobs. Our customers will also appreciate the increased choice we can now offer."

Lloyds TSB Group was advised by Mark Lazenby at Watson Burton. Imprint Creative Print Solutions was advised by Angela Toner at Baker Tilly and Martin Hulls at Ward Hadaway.

CAPTION(S):

SHAKE ON IT: Jim Newton, of Imprint, and Andrew Bentley, of Lloyds TSB.