Waterford Crystal by John M. Hearne;

Author:John M. Hearne; [Неизв.]
Language: eng
Format: epub
ISBN: 9781784507596
Publisher: Lightning Source Inc. (Tier 2)
Published: 2018-10-20T20:00:00+00:00

Striking glass-blowers, 1990. (Photographer: John Power); Dr E. Patrick Galvin. (Joe Evans)

Striking workers, 1990. (Photographer: John Power)

The plight of the Waterford Crystal operation, analysts say, is the result of a campaign to apply the methods of industrial management to the traditional craft business of crystal-making – an efficiency drive that backfired with a vengeance.11

O’REILLY

In March 1990, it was announced that Waterford Wedgwood had secured significant investment from a consortium led by Dr Tony O’Reilly. O’Reilly had initially attempted to buy the Waterford Wedgwood Group in 1988 but his offer was rejected. However, his interest in Waterford pre-dates the Globe acquisition. In 1983, O’Reilly attempted to gather a consortium of investors in order to acquire the company. Two of those approached, John Magnier, owner of the famous Coolmore stud and his father-in-law Vincent O’Brien, perhaps the most famous horse trainer in the world at the time, showed little interest in O’Reilly’s proposal. O’Reilly, undeterred, commissioned Irish Marketing Surveys (IMS) to carry out market research on the company which he himself financed.12 One of the most interesting results emanating from that survey was that only 30 per cent of Americans who purchased Waterford crystal were aware that it was produced in Ireland. This further emboldened him in his desire to buy the company. His problem, as always, was to find wealthy investors who shared his vision for the troubled company. When Paddy Hayes was appointed Chief Executive Officer of Waterford Crystal in 1985, O’Reilly sent him a copy of the IMS report as a ‘gift’. By 1988, O’Reilly was ready to pounce, he had his investors in line but things did not go to plan. Waterford Crystal’s deputy chairman, Howard Kilroy, rebuffed O’Reilly’s advances. Within a year O’Reilly had put Operation Gemini in place, the codename for his eventual takeover of Waterford Wedgwood.13 He did not have long to wait. By 1990 the group was, because of mounting debts, more amenable to do a deal. Thus, in March 1990, O’Reilly’s coalition of investors (Invesco), which included the New York investment bank, Morgan Stanley and his own Fitzwilton company, paid just under IR£80 million for 29.9 per cent of the company. This was achieved by issuing 212 million shares to Shuttleway – 50 per cent Fitzwilton and 50 per cent Morgan Stanley – and a one-in-five rights issue of 82 million shares. Morgan Stanley acquired 15 per cent with 9.4 per cent going to Fitzwilton and O’Reilly personally acquiring 5 per cent. The deal valued Waterford Wedgwood at stg£230 million almost stg£25 million less than was paid for Wedgwood in 1986.14 As a result of this injection of equity, gearing was reduced from 183 per cent to a very attractive 26 per cent. Also, an additional financing agreement for IR£105 million over three years was agreed with a syndicate of banks so as to secure the company’s future growth.15 What is interesting about O’Reilly’s involvement is, that around this time, he had contacted the family-owned Swarovski Company with regard to exploring cooperation between the two companies.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.