GLENCAIRN Crystal has bought a rival Scots glassware business as it looks to maintain strong growth in sales and signalled its appetite for more acquisitions.
The East Kilbride based company, which supplies products like engraved decanters, has bought Burns Crystal from businessman Arthur Levy for an undisclosed sum.
Based in Mauchline, Ayrshire, Burns sells products such as decanters and glasses with hand engraving completed by its employees.
The company has customers across Scotland and south of the border and annual turnover of around £600,000. The acquisition should provide a significant boost to sales at Glencairn Crystal, owned by the Davidson family.
Glencairn's managing director, Paul Davidson, said the deal provided a great opportunity to take a successful brand into the company's stable and help achieve its full potential.
He added: "Both brands will remain independent but we see Burns as being very complementary to our own operations in both operational and product range, which will fit well into Glencairn's plans."
His brother and fellow director Scott noted that the acquisition will allow Glencairn to increase its workforce of specialised engravers, who can take years to train.
Burns Crystal's seven employees will join Glencairn, increasing total workforce numbers to 51.
The company said the takeover would also give management valuable experience of using acquisitions to supplement organic growth.
"If we can do this and do it well we can take bigger bites at other things," said Scott Davidson.
The company said it is looking at future acquisitions which might complement its business. These include operations across the supply chain.
The takeover of Burns Crystal comes amid strong growth in sales at Glencairn. Directors expect the firm to achieve double digit growth in turnover in the year to April. Turnover rose eight per cent annually in the year to April, to £6 million.
Glencairn has capitalised on booming demand for Scotch whisky overseas and the associated trend among drinks makers to premiumise products.
This has involved producers launching rages of aged whiskies which are sold in smart glassware and packaging and can fetch much more than standard products.
Glencairn has been drafted in to produce things like silver topped decanters by whisky firms.
Scott Davidson noted the makers of an increasing number of spirits are calling on Glencairn to help them premiumise products.
"We are getting so many enquiries, great opportunities to work with major brands," he said.
The company was chosen recently to design and supply a hand-cut crystal decanter for the final edition in Stolichnaya vodka's Elit pristine water series, the Andean edition.
Glencairn has been investing in building up its international marketing capability.
The company is planning to increase its workforce significantly to support the expected growth.
It plans to recruit 19 more employees over the next three years in East Kilbride. The company designs products there and completes engraving and related work such as attaching silverwork.
The Davidson brothers' father Raymond founded Glencairn Crystal in 1981. He left the former Edinburgh Crystal business to focus on the corporate market because he thought there was a limited future for the retail trade. Scott Davidson noted there is very strong competition in the retail market today.
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