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LONDON (Alliance News) - Personal care and beauty products company Swallowfield PLC on Thursday said it has struck a deal with fellow UK-listed rival Creightons PLC to acquire the Real Shaving Co brand for up to GBP1.17 million.
Swallowfield will pay GBP0.9 million in cash initially, with a further GBP0.1 million due dependent on the outcome of certain customer negotiations and another GBP0.17 million to cover stock at valuation.
It will finance the deal with a five-year term loan of GBP0.7 million from HSBC Bank PLC, plus existing cash facilities.
Creightons said it intends to use the proceeds from the sale to pay off short-term debt obligations and to provide working capital.
"We are delighted to acquire such a well-established and well-loved brand that will increase the branded element of our business, in line with our stated strategy. We look forward to bringing our industry leading innovation, both in packaging and formulation, to the Real Shaving brand, driving profitable growth in the future," said Swallowfield Chief Executive Chris How.
Swallowfield shares were untraded on Thursday morning, having last traded at 106.00 pence, while Creightons shares were up 1.5% to 8.75 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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