LIG sales to balloon on pounds 46m US buy

London International is to become the largest condom manufacturer in America following the acquisition of Aladan, the company with a lucrative contract to supply the US government with 250 million condoms a year for its overseas aid programmes.

The deal is the first big acquisition by LIG since a disastrous foray into photo- processing in the late 1980s almost brought the company down. Analysts said the purchase marked a shift from recovery to a new growth phase.

Nick Hodges, chief executive, said: "This is a landmark deal in the group's development and provides us with an exciting platform from which to achieve sustainable long-term growth in core business areas."

LIG will pay a maximum of pounds 46m for Aladan, which as well as its leading position in condoms brings a dominant place in the fast-growing examination glove market. Aladan has 13 per cent of the market and is considered well placed to benefit from a shift from powdered to powder-free gloves.

LIG has already introduced a powder-free surgeon's glove, Biogel, which is showing spectacular growth especially in the key US market. The new gloves sell at much higher prices than the powdered versions they replace, boosting margins in what was considered to be a mature market.

That is expected to help LIG meet target return on sales of 15 per cent by the middle of 1997. November's interim figures showed a rise in margins from 4.8 to 6.7 per cent. Analysts expect the return in the traditionally better second half to the end of March to have broken the 10 per cent barrier.

Since LIG was refinanced in 1994 it has focused on its core businesses of condoms and medical gloves, particularly in the US, the largest market for gloves and the second-biggest for branded condoms. It recently became the largest condom maker in Spain following the acquisition last month of Androtex, one of that country's largest manufacturers.

Aladan brings on board two low-cost manufacturing sites in Alabama.In the year to December, it made profits of $10.5m (pounds 7.0m) on sales of $85.9m (pounds 56.9m).

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA celebration of British elections
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: Trainee Recruitment Consultant - Swiss Banking and Finance

£20000 - £25000 per annum + Uncapped commission: SThree: Can you speak German,...

Ashdown Group: Marketing Executive - 6 month FTC - Central London

£25000 - £30000 per annum + benefits: Ashdown Group: An exciting opportunity f...

Ashdown Group: Junior Project Manager (website, web application) - Agile

£215 per day: Ashdown Group: Junior Project Manager (website, web application ...

Guru Careers: Software Engineer / Software Developer

£40-50K: Guru Careers: We are seeking an experienced Software Engineer / Softw...

Day In a Page

Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power
Rare and exclusive video shows the horrific price paid by activists for challenging the rule of jihadist extremists in Syria

The price to be paid for challenging the rule of extremists

A revolution now 'consuming its own children'
Welcome to the world of Megagames

Welcome to the world of Megagames

300 players take part in Watch the Skies! board game in London
'Nymphomaniac' actress reveals what it was really like to star in one of the most explicit films ever

Charlotte Gainsbourg on 'Nymphomaniac'

Starring in one of the most explicit films ever
Robert Fisk in Abu Dhabi: The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers

Robert Fisk in Abu Dhabi

The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers
Vince Cable interview: Charging fees for employment tribunals was 'a very bad move'

Vince Cable exclusive interview

Charging fees for employment tribunals was 'a very bad move'
Iwan Rheon interview: Game of Thrones star returns to his Welsh roots to record debut album

Iwan Rheon is returning to his Welsh roots

Rheon is best known for his role as the Bastard of Bolton. It's gruelling playing a sadistic torturer, he tells Craig McLean, but it hasn't stopped him recording an album of Welsh psychedelia
Morne Hardenberg interview: Cameraman for BBC's upcoming show Shark on filming the ocean's most dangerous predator

It's time for my close-up

Meet the man who films great whites for a living
Increasing numbers of homeless people in America keep their mobile phones on the streets

Homeless people keep mobile phones

A homeless person with a smartphone is a common sight in the US. And that's creating a network where the 'hobo' community can share information - and fight stigma - like never before