LONDON (Alliance News) - Homewares manufacturer Portmeirion Group PLC on Thursday said it has purchased Lighthouse Holdings Ltd for GBP17.5 million, in an acquisition which its expects to be earnings enhancing in the current financial year.
Lighthouse Holdings's operating subsidiary is Wax Lyrical Ltd, the home fragrances manufacturer and retailer.
Portmeirion said it purchased Lighthouse Holdings for GBP17.5 million plus surplus cash as at April 30, which is estimated to be no greater than GBP500,000.
Portmeirion added that it expects use its existing markets and distribution channels to grow Wax Lyrical's sales, particularly in the UK, the US and South Korea.
Wax Lyrical has 122 employees, Portmeirion said, adding that Wax Lyrical Managing Director Joanne Barber will continue to run the business from its existing facilities in the Lake District following the acquisition.
The consideration has been funded from cash reserves and debt drawn down on new banking facilities comprising a GBP10.0 million loan facility, a GBP10.0 million credit facility and a GBP2.0 million overdraft facility, Portmeirion added.
"We are proud to acquire a group delivering world class Made in Britain home fragrances. Together with our existing strong brands of Portmeirion, Spode, Royal Worcester and Pimpernel, these new brands will drive our business forward and offer significant opportunities for growth," said Chief Executive Lawrence Bryan.
Shares in Portmeirion were up 1.7% at 1,180.00 pence on Thursday morning.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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Portmeirion (PMP)