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Waterford Wedgwood: eyeing acquisitions

6 May 1999: Irish china and glassware group Waterford Wedgwood Plc said it was considering an acquisition and could spend up to 250 million punts.
“We are at a point of considering two or three acqui…

6 May 1999: Irish china and glassware group Waterford Wedgwood Plc said it was considering an acquisition and could spend up to 250 million punts. “We are at a point of considering two or three acquisitions,” chairman Tony O“Reilly told reporters at the shareholder meeting. A company official clarified that Waterford Wedgwood was looking for a single acquisition among the potential choices. O“Reilly said the company would like to make an acquisition in the United States and would be able to spend between 200 million and 250 million punts. He said an announcement may come in the next three months but gave no further details. O“Reilly said he could not comment on media reports that Waterford Wedgwood was interested in British ceramics and pottery company Denby Plc. “But it“s a company we admire,” he said. Waterford shares rose strongly this week on speculation of talks with Denby. Denby said it was in possible takeover talks with an unnamed party but stressed that discussions were at a preliminary stage. Meanwhile, the company said its first quarter trading was in line with expectations, and that the company was on course to meet its 1999 targets. “Our performance in the first quarter of 1999 is proceeding very much in line with expectations,” said O“Reilly in his annual statement to shareholders. “Our strategies, investments, new products and enhanced marketing campaigns are all working together to ensure we achieve our goals for 1999 – and the years ahead,” he said. O“Reilly said there had been continuing progress in the US, while in Japan the difficult economic conditions that affected the company“s performance in 1998 appeared to have bottomed out. He also said that the company was optimistic about the Japanese market. Waterford said it achieved record operating profit and sales last year, posting annual rises of 12.6% and 38% respectively.

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