Preston brands and Primo Distribution put up for sale
News that leading European manufacturer Preston Innovations is for sale is likely to trigger an avalanche of interest from potential buyers in Europe and the US.
The prospect of owning such a strong brand could also attract enquiries from cash rich Chinese companies looking for a ready-made route into Europe.
The £17m turnover company is best known for the Preston Match brand, but also owns the highly-regarded Korum, Avid Carp and Sonubaits brands.
Preston products are sold across Europe through Primo Distribution in the Netherlands, which is also part of the sale. The total business is reportedly valued at £25m.
The UK-based company was founded in 1984 by David Preston (54). Preston says that after 30 years the business has reached the stage where it will benefit from new ownership to secure the future of the brands and take them to the next level.
Preston Innovations Managing Director, Sarah Pheonix, told Angling International that the sale represents a good opportunity for a potential buyer interested in expanding the business in both Europe and the UK.
“The business has grown 43% in the last four years and is still rapidly expanding,” explained Pheonix. “European sales are doing extremely well and now represent around 25% of turnover. Preston Innovations can be three or four times the size than it currently is in Europe.
“It is phenomenal when you think that we have had four years of hard recession and yet all four brands are growing and exceeding expectations. We are taking more and more market share every year. And there is still so much potential in the company in the UK and Europe.
“David has kept his cash in the business for the last 30 years and feels that now is a good opportunity for someone else to invest and take it forward.”
Preston Innovations employs 27 staff and is based in Telford, Shropshire. It has appointed Cattaneo LLP, a company specialising in mergers, acquisitions and disposals, to handle the sale.