LONDON (Alliance News) - Creightons PLC Tuesday said it has now disposed of its 55% interest in a joint venture which holds the intellectual property rights to the Twisted Sista haircare brand for a cash payment of GBP448,000.
The personal care and beauty products maker said the interest is being sold to Stephen Durham, who owns the other 45% interest in the company.
The company said it expects to report a profit of roughly GBP375,000 on the sale in its financial report for the six months ending September 30, net of costs related to the deal.
As part of the deal, Creightons subsidiary Potter & Moore Innovations Ltd, which currently sells products under the Twisted Sista brand to retail and wholesale customers, has entered a five-year exclusive manufacturing agreement with Twisted Sista, with transitional arrangements to facilitate the transfer of the current business processes over the next 12 months or so.
The company said proceeds from the disposal will be used to reduce borrowings and to enable it to continue to develop new and existing brands which will help it grow its business base.
Creightons shares closed up 5.0% at 4.20 pence on Tuesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Creightons (CRL)