LG Davis diversifies through acquisition

A FAMILY-owned and run printing business based in Birmingham is pressing on with its expansion plans via the acquisition of a specialist firm.

LG Davis (Stationers) has acquired Loughborough-based paper roll supplier Fortoak – a deal which will see turnover grow to a combined £4m.

The merger was finalised as LG Davis, which employs 36 people at its 22,000 sq ft headquarters in Kings Heath, celebrated its 50th anniversary.

The deal was completed with the support of the Birmingham office of chartered accountants and business advisors Chantrey Vellacott DFK, which has acted for the firm for the duration of its 50 year history.

Fortoak sells point of sale consumables including roll paper, till rolls and credit card rolls to more than 30,000 merchants across the UK and is continuing to trade from its 12,500 sq ft premises on Derby Road in Loughborough where six staff are based.

The company was established in 1982 and last year had a turnover of £1.3m.
Liz Smith, managing director of LG Davis, which was launched by her father and company chairman Ron O’Donnell, said the firm is on course to boost turnover by more than 10% in 2013 following the merger.

“We enjoyed a really busy year in 2012, which was a special year for everyone associated with LG Davis, as it marked our 50th anniversary,” she said.

“We’re delighted to have completed this deal. Fortoak is a well-established player in its field with a growing customer base and the acquisition fits in perfectly with our growth strategy and diversification into new markets.”

Suk Aulak, partner at Chantrey Vellacott DFK, said: “It is great to see a well-established firm growing, particularly in this tough economic climate.”