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Last checked at 
3 May 2012 07:00
Mulberry Group plc
Deferred consideration payable
On 14 May 2009 Mulberry Group plc ("Mulberry") announced details of an agreement with its then US partner to terminate the existing joint venture arrangements allowing Mulberry to take full control of the wholesale and retail sales of Mulberry products in the key US market. The US partner was called Mulberry USA LLC , a limited liability partnership between Mulberry and a company under the control of the owners of Challice Limited ("Challice") which owns approximately 56% of the issued share capital of Mulberry.
Under the terms of the termination agreement Mulberry agreed inter alia to pay Challice deferred consideration of up to £1m (either in cash or shares at Mulberry's option) if sales generated from the US market during the third year post completion exceeded an agreed threshold of $6m which was approximately twice the turnover generated in the US market in the year prior to the termination of the joint venture arrangements.
Mulberry confirms that the agreed threshold was exceeded comfortably and accordingly the sum of £1m cash has been transmitted to Challice. Following this payment no further consideration is payable under the termination agreement.
For further details please contact:
Pelham Bell Pottinger Dan de Belder |
0207 861 3232 |
Mulberry Investor Relations Amelia Fincher |
0207 605 6771 |
Altium Ben Thorne |
0207 484 4076 |
Barcap Jon Bathard-Smith Nicola Tennent |
0203 134 9803 |
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