Heads of agreement between the firm and its target have been signed, with the mystery deal to be confirmed within the week.

The firm announced it was looking at acquisitions earlier this year, after signing a new long-term finance deal (PrintWeek, 12 February).
The firm Service Graphics is to acquire has a 1m turnover and specialises in modular displays and live events, and has a leading financial blue-chip client.

"We aren't looking to acquire 20 units, but three to four strategic acquisitions," said sales director Ben Moss.

These, he said, would be either competitors whose business Service Graphics could expand, or firms in areas in which the company has no coverage, such as the north east of England or Manchester.

"We are trying to get our turnover from 35m to over 40m, and as we now have good solid divisions and profits we can do this through the right acquisitions," said Moss.

The firm has established a print management facility in Nottingham, which is headed by former Boots group point-of-sale buyer Alan Pollard.

Set up three months ago, the facility has already achieved sales of 280,000, and is planning to build upon its staff of two in the near future.

Moss said like-for-like sales this year had increased by 12%, while operating profits had gone from just 50,000 last year to over 2m for 2004.

Debt has also been reduced, by 2m to 7m, while the company spent over 1m on new equipment this year.

Story by Andy Scott