MPH.L Regulatory News (MPH)

7 Mar 2006 07:04

Marchpole Holdings PLC07 March 2006 FOR IMMEDIATE RELEASE 7 March 2006 Marchpole Holdings plc ("Marchpole") MARCHPOLE COMPLETES ACQUISITION OF MODA AMERICA LLC Marchpole Holdings plc, which designs, produces and sells high quality clothingand accessories for six world class brands (Yves Saint Laurent, Boateng,Jean-Charles de Castelbajac ("JCC") and Jean-Charles de Castelbajac / Rossignol,Emanuel Ungaro and Ungaro), today announces the successful completion of itsacquisition of the whole of the issued share capital of Moda America LLC. Moda America is the US licensee for Emanuel Ungaro and the acquisition bringsfive key benefits : - Based on turnover of $20m in the year to 31st December 2005, primarily from major blue chip U.S. retail customers such as Federated, Macy's, Robinson May and Marshall Fields, the Directors anticipate that sales and margins will increase as Moda benefits from Marchpole's design, sourcing and production base. - Marchpole will be launching the diffusion Ungaro homme collection in the UK from Spring/Summer 2007. This collection will be priced at similar levels to the current YSL ranges which the Directors expect to have significant mass market appeal across Marchpole's existing customer base. - The presence of Marchpole in North America and the new distribution relationships accessed through this acquisition will facilitate the launch of the Jean Charles de Castelbajac brands in the US from Autumn/Winter 2006. - Marchpole's relationship with Emanuel Ungaro has been strengthened further, illustrated by the granting of womenswear distribution rights for the US. - The Emanuel Ungaro mainline collection, already established by Marchpole in Europe and Asia, will now be launched into the US, Canada and South America. Total consideration for the acquisition will be $5.5m in cash, to be satisfiedfrom the Company's existing resources, of which $1.0m was paid on completion andthe balance of $4.5m payable on 31st July 2006. Current Trading Outlook With the third quarter now complete and deliveries underway for the new Spring/Summer 2006 collections, the Directors remain confident of the Company meetingmarket expectations of profit before taxation for the current financial year of£5.0m. In addition, the Directors are intending to implement proposals to enable theCompany to buy-in its issued share capital subject to shareholder approval asthey believe that the current share price undervalues the Company and does notadequately reflect the strong future prospects of the business. Chairman Chris Phillips commented: "The acquisition contributes significantly to our strategic objective ofbecoming a truly worldwide manager of luxury brands". For further information contact: MarchpoleGreg Tufnell - Chief Executive 020 7908 7700 BuchananTim Thompson / Nicola Cronk 020 7466 5000 This information is provided by RNS The company news service from the London Stock Exchange