JNY.L Regulatory News (JNY)

13 Apr 2006 12:46

Watermark Group PLC13 April 2006 For Immediate Release: 13 April 2006 Watermark Group plc ("Watermark" or "the Company") Acquisition of International Catering Limited ("ICL") Watermark Group plc, the leading provider of in-flight products, in-flightcatering and cabin management services to the airline and travel industry,announces the acquisition of ICL by its wholly owned in-flight cateringsubsidiary, Air Fayre Limited ("Air Fayre") from Japan Airlines InternationalCorporation Limited ("JAL"). Key Points: • ICL is the wholly owned in-flight catering subsidiary of JAL, and has been operating at Heathrow since 1984, with its largest clients being JAL, Singapore Airlines and Thai Airways. • Air Fayre has acquired the entire issued share capital of ICL for a nominal consideration of £1, and as part of the acquisition, has paid to JAL, the proceeds of the freehold property sale and leaseback arrangement of £6.88m, which are net of a number of agreed cost deductions. • JAL has signed a new long term contract for the provision of catering services at Heathrow by ICL. • ICL's last reported accounts for the year ended 31 December 2005, show gross assets of £16.15m, and a loss after tax of £22,854. • Reasons for the Acquisition - Provides an additional £19m per annum of catering sales revenues, and 11 new clients to be catered for at Heathrow. - Provides an opportunity to cross sell other Watermark Group products and services to these clients. - Provides a small contribution to the results of Watermark for 2006 and a more substantial contribution in 2007. Maurice Ostro, Managing Director of Air Fayre said, "This acquisition is animportant milestone in Air Fayre's strategy of becoming a major player inairline catering." For further information please contact: Crispin Quail Jeremy CareyWatermark Group plc Tavistock CommunicationsTel: 020 8606 1314 Tel: 020 7920 3150e-mail: info@watermark.co.uk e-mail: jcarey@tavistock.co.uk This information is provided by RNS The company news service from the London Stock Exchange