Corporate NI Bullish, Growth in Acquisitions and Buy-Outs Suggests

16th Apr 2007

A significant increase in acquisitions and buy-outs involving local businesses is evidence of a new found zeal within corporate Northern Ireland, a leading bank suggests. Ulster Bank, which has supported more than 200m worth of acquisition and buy-out activity in Northern Ireland during the past 24 months - up from around 100m in the previous two years - says that local businesses and corporate investors are increasingly bullish, in part due to strong local and global economic conditions and relatively low interest rates.

Ulster Bank recently supported the acquisitions by Cookstown-based Keystone, of its main rival IG Lintels, based in Wales. Ulster Bank also recently supported major acquisitions including the multi-million purchase by Tayto of UK brand Golden Wonder, as well as a number of acquisitions by Resource of corporate cleaning firms in the Republic of Ireland and Britain.

The bank has also supported management buy-outs of major local businesses including Antrim printing firm W&G Baird and the St Brendan's Irish Cream Liqueur Company -now called Niche Drinks.

"Northern Ireland corporates are increasingly grabbing their share of the global mergers and acquisitions bonanza, which saw international M&A activity reach almost 2,000 billion in 2006," says Ulster Bank corporate banking director, Kevin Kingston.

'Bold acquisitions by local businesses demonstrate a heightened confidence within the Northern Ireland corporate sector and this is echoed in some of the dynamic buy-outs by shrewd management teams that we have also seen,' he continues.

Mr Kingston says that the trend is good news for the local economy. 'Our economy is increasingly adapting to globalisation and the need to compete on an international platform. And some of the deals that we are seeing provide evidence that they are making a very good job of this.'

'We are seeing an increasing dynamism and entrepreneurial zeal amongst our major businesses which is in part due to historically low interest rates and upbeat global economic conditions but also due to confidence in the local economy and confidence bred by our increasingly stable political and social landscape,' Mr Kingston adds.

Figures compiled by Thomson Financial show that in 2006 worldwide mergers and acquisitions activity reached a record $3,760 billion (1,920 billion) compared with $3,400 billion in 2000. Experts predict that the trend is unlikely to slow in 2007.

-ENDS-

About Ulster Bank Group

Ulster Bank Group is a wholly owned subsidiary of The Royal Bank of Scotland (RBS) Group, one of the world's largest banking groups in the world. RBS employs 145,000 people of which 6,380 work for the Ulster Bank Group.

Following the acquisition of First Active in January 2004, and together with Ulster Bank, the enlarged Ulster Bank Group consists of 272 branches, 32 Business Centres, more than 1.7 million customers and over 1000 ATM's.

Ulster Bank Group received an 02 ability Award in February 2006 for the second year running. This was awarded for demonstrating innovative best practice in the employment of people with disabilities.*

*The O2 ability award programme has been designed and created by the Aisling Foundation and organised in partnership with access ability. It is the very first Irish business award for the best practice in the employment of people with disabilities.