NICL12 Mar 2011 11:14
NOTES TO THE PRELIMINARY ANNOUNCEMENT
Acquisition of Dayla Liquid Packing Ltd
Nichols plc announces the acquisition of the remaining 50% of the issued share capital of Dayla Liquid Packing Ltd (Dayla), for a consideration of £2.3m, based upon the previously agreed earnings valuation mechanism contained in the acquisition agreement dated December 2008. This completes the full acquisition of the company having purchased the initial 50% on 9 December 2008. This acquisition gives us access to the growing premium juice, bag in box market and broadens our product offering.
Ian Richard Jenkins and Christine Myrtle Jenkins are shareholders in and directors of Dayla. Accordingly the acquisition of the remaining 50% of Dayla from them is deemed to be a related party transaction for the purposes of the AIM Rules for Companies.
The Nichols plc Board, excluding Brendan Hynes who is also a Director of Dayla but not a shareholder, having consulted with Brewin Dolphin Ltd, the company's Nominated Adviser, believe that the terms of the acquisition of the remaining 50% of Dayla are fair and reasonable insofar as the Company's shareholders are concerned.
In Dayla's last audited accounts (for the 15 months to 31 December 2009) its sales were £13.0m and operating profits were £1.1m. Total assets less current liabilities were £1.5m, with £0.3m of long term liabilities including debt.
9 March 2011