PURCHASE OF TRADE AND ASSETS OF LISTEN2, GARDEN BIRD SUPPLIES AND GARDEN CENTRE ONLINE
MBL Group plc, the UK distributor of home entertainment products, is pleased to announce that it has conditionally agreed to purchase the trade and certain assets of Listen2 ("L2"), Garden Bird Supplies ("GBS") and Garden Centre Online ("GCO") from Flying Brands Limited for a total cash consideration of £0.72m on completion.
Following the loss of its major customer in April 2011, the Board determined that it was no longer financially viable to continue to supply direct to major retailers and the strategic decision was made to continue the transition towards direct to consumer and online sales and seek opportunities to diversify operations. The Board of MBL consider that the purchase represents complementary additions to the Group's existing operations which build on the Board's strategic plan.
Listen2 is a direct mail order catalogue and telephone-based retail business which specialises in the home entertainment market.
Garden Bird Suppliesis an established direct mail order, online and telephone-based retail business which specialises in the sale of garden bird seed and associated products.
Garden Centre Onlineis an online and telephone-based retail business which specialises in the sale of garden and outdoor leisure equipment.
L2, GBS and GCO have an established customer base which it is anticipated will enhance the current offering of the Group. For the year ending 31 December 2010, the businesses generated an operating profit of £0.6m.
The purchase is conditional on Flying Brands Limited receiving shareholder approval for the disposals and it is expected that completion will take place no later than 4 May 2012.
Peter Cowgill, Chairman of MBL, commented:
"I am very pleased to announce the purchase of Listen2, Garden Bird Supplies and Garden Center Online. The purchase broadens the scope of the Group's operations and supports the Board's strategic intent to strengthen the Group following the loss of its major customer last year,"
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