Challenger Energy Regulatory News (CEG)

19 Sep 2006 07:00

CORSIE GROUP PLC ACQUISITION OF KALOSS Corsie acquires UK leading distributor & wholesaler of health and beauty products The Board of Corsie Group plc ("Corsie" or the "Company"), the AIM listedspecialist in the assembly and sale of products and services to the leisuremarket, is pleased to announce that it has today acquired the business andassets of Kaloss International Limited ("Kaloss"), a distributor and wholesalerof health and beauty products, for a cash consideration of ‚£434,000.KEY POINTS * Kaloss marks Corsie's first acquisition since listing on AIM in June; * For the year ending March 2006 Kaloss delivered gross profits of ‚£804,000 on revenues of ‚£1.4m; * Kaloss overheads absorbed within Corsie's Musselburgh operation; * Kaloss customer base stands at circa 450 accounts; * Robust health and beauty market; and * Acquisition reinforces Board's strategy of achieving growth through selective acquisitions of companies in the leisure market, which can be relocated and integrated into the existing overhead base. Under the terms of today's acquisition, the final consideration will beadjusted on a pound for pound basis to reflect any movement in the net assetposition at completion.For the year ending March 2006 (taken from the unaudited management accounts)Kaloss delivered a gross profit of ‚£804,000 on revenues of ‚£1.4m.Kaloss is one of the UK's leading distributors and wholesalers of health andbeauty products. Kaloss has a diversified portfolio of products, includinghealth supplements, UV and non-UV tanning products. Kaloss has seen a strongincrease in its customer base and now has over 450 accounts.Following the acquisition, Kaloss' business operations will be immediatelyrelocated to Corsie's Musselburgh headquarters, and will commence trading fromTuesday 19 September. The Board expects the acquisition to be fully integratedby 30November 2006.Commenting on the acquisition, David Mathewson, Chairman of Corsie Group, said:"This is an exciting bolt-on opportunity for the Corsie Group and is a furtherstep in implementing the group's strategy of becoming a major force in thedistribution of leisure and well-being products. The overheads of Kaloss willbelargelyabsorbed within the Group's Musselburgh operation."Enquiries:Corsie Group plcTel: 0131 653 0535Richard Corsie MBE, Chief Executivewww.corsiegroup.comCity Financial Associates Limited Tel: 020 7090 7800James CaithieBishopsgate Communications Ltd Tel: 020 7430 1600Dominic BarrettoAbout Corsie Group plcCorsie is a provider of products to the worldwide leisure market. Its businessoperates in the UK and has customers in a number of geographical marketsincluding Europe, Canada, Hong Kong, Malaysia, Australia and New Zealand. Thebusiness was founded by Richard Corsie in 1997 after he retired from the sportof bowls and following the buyout of Douglas Kenn Limited and Worth SportsLimited. Corsie operates from its headquarters in Musselburgh, near Edinburgh.The Corsie Group is involved in the assembly and sale of products and servicesto the leisure market. The Group consists of three operating divisions: SpaDivision, Surfaces Division and Sports Division. Within each division, theGroup is focused on achieving growth both organically, and through selectiveacquisition of companies or businesses in the leisure market.Information on Kaloss can be obtained at: www.kaloss.comENDCORSIE GROUP PLC