Last checked at 10 Dec 2008 07:00
| Date: | Embargoed until 07.00am, Wednesday 10 December 2008 | |
| Contacts: | John Nichols, Non-Executive Chairman | |
| Brendan Hynes, Group Chief Executive | ||
| Nichols plc | ||
| Telephone: 01925 222222 | ||
| Website:www.nicholsplc.co.uk | ||
| Alistair Mackinnon-Musson | Richard Evans | |
| Nathan Field | Brewin Dolphin Ltd | |
| Hudson Sandler | (Nominated Adviser) | |
| Telephone:020 7796 4133 | Telephone: 0845 213 4853 | |
| Email: nichols@hspr.com | Website: www.corporatefinance.brewin.co.uk | |
Nichols plc
Acquisition of Dayla Liquid Packing Ltd
Nichols plc ("Nichols") is delighted to announce the acquisition of 50% of Dayla Liquid Packing Ltd ("Dayla") with the option of buying the remaining 50% in 2011 or 2012.
Nichols is a highly focused soft drinks and dispensed cold drinks business, comprising two operations:
| 1. | Soft Drinks (sales and marketing of the Vimto brand, which is now available in over 65 countries throughout the world, as well as the Panda and Sunkist brands in the UK) |
| 2. | Dispense Systems (namely Cabana, Beacon and Cariel cold drinks on draught 'dispense' businesses) |
Nichols is the UK's third largest supplier to the dispense sector, while Dayla has built a unique position in the European market, with leading new product development and aseptic, premium juice manufacturing capabilities. Furthermore, Dayla has been a major supplier to Cabana for a number of years.
This investment will enable Nichols to capitalise on opportunities both in the UK and overseas and allow it direct access to the growing premium juice market.
Nichols has acquired 50% of the issued share capital of Dayla, for £2.78 million, with a further £1.0 million deferred until December 2009. Nichols also has an option to purchase the remaining 50% in 2011 or 2012, based on an agreed earnings valuation mechanism.
Dayla's sales in the last unaudited accounts for the year to September 2008 were £9.2 million, operating profits were £0.9 million with compound sales growth of 88.4% achieved in the last three years. Total assets less current liabilities were £3.44 million with £1.08 million of long-term liabilities, including debt.
It is intended that Ian Jenkins will remain as Managing Director of Dayla throughout the option period.
John Nichols, Non executive Chairman of Nichols, said:
"This deal gives our Dispense Systems Operation direct access to the growing premium juice market and strengthens further the existing supply relationship between Cabana and Dayla. Like Nichols, Dayla has successfully grown its Dispense business in the last three years and we believe our combined capabilities will improve our market position both at home and overseas."
Commenting on the deal Ian Jenkins, Managing Director of Dayla, said:
"The Nichols investment shows its strong commitment to developing Dayla's unique position in the drinks dispense market. This move is very exciting for Dayla, after working closely with Nichols for many years. Nichols has strong links in the markets that Dayla is looking to develop and there are clear synergies that will enable both Dayla and Nichols to grow jointly in new and existing international markets."
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