RSS feedsPrinting 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 bank loans.
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.
