(Alliance News) - Crockery maker Portmeirion Group PLC said Monday it has acquired US homewares firm Nambe LLC for USD12 million in cash in order to built scale in its "key" US market.
Portmeirion - which owns the Royal Worcester, Pimpernel and Spode brands amongst others - will fund the USD12 million cash-and-debt free purchase through a new GBP10 million debt facility. This facility will be repayable over the next five years.
In 2018, Nambe - which makes premium cutlery, glassware and crockery - generated adjusted earnings before interest, taxes, depreciation and amortisation of USD1.1 million from revenue of USD18.0 million.
In 2018, Portmeirion generated GBP11.8 million in Ebitda on revenue of GBP89.6 million. Pretax profit stood at GBP9.7 million.
AIM-listed Portmeirion explained the deal will provide additional scale to its US subsidiary, also allowing it to expand its product category coverage.
"Having been working with Nambe for nearly a year on potential synergistic opportunities, we are delighted to acquire this historic US brand together with a strong management team," Portmeirion Chief Executive Officer Lawrence Bryan said.
"Nambe is synonymous with market-leading design in homewares and we are hugely excited to take the brand on the next part of its journey," Bryan added. "Portmeirion has a great track record of adding value through acquiring quality brands that can then be leveraged through our global sales infrastructure. We are looking forward to working with the Nambe team on growing the business."
Shares in Portmeirion were untraded in London Monday, last quoted at 960.80 pence. The firm will announce its interim results on August 1.
Portmeirion (PMP)