Last checked at 13 Aug 2020 07:00
13 August 2020
Portmeirion Group PLC
(the "Group")
Acquisition of remaining 50% equity in Portmeirion Canada
Portmeirion Group PLC, the designer, manufacturer and worldwide distributor of high quality homewares under the Portmeirion, Spode, Royal Worcester, Pimpernel, Wax Lyrical and Nambé brands, is pleased to announce that is has acquired the remaining 50% of the issued share capital of Portmeirion Canada Inc. ("Portmeirion Canada") from Royal Selangor Inc. ("Royal Selangor"). This purchase means the Group now owns 100% of the issued share capital of Portmeirion Canada.
As part of the acquisition, key licence distribution agreements in the Canadian marketplace are expected to continue. The Group has also agreed to purchase certain assets from Royal Selangor.
The total cash consideration payable by the Group is CA$1.0 million (£0.6 million) which is to be funded from the Group's existing cash resources.
For the 12 months to 30 June 2020, Portmeirion Canada recorded sales of CA$3.5 million (unaudited) and contributed approximately CA$0.3 million of net profit to the Group results. As at 30 June 2020, Portmeirion Canada reported unaudited net assets of CA$2.3 million.
Portmeirion Canada will continue to operate from its current office and warehouse facilities and retain the combined workforce.
Mike Raybould, Chief Executive commented:
"We have successfully operated an associated company for our distribution operation in Canada for a number of years. By acquiring the remaining 50% share of Portmeirion Canada and certain trade and assets of Royal Selangor, we obtain control over the selling and distribution process in this market and the rights to key licence distribution agreements. As we previously announced, one of the uses of the recent equity raise proceeds was to build a more significant presence in the Canadian market and it is therefore pleasing to have achieved this strategic goal in such a short timeframe. We see this acquisition as a strong opportunity to revitalise and grow this important market, particularly through further penetration of online channels."
Notes: This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
ENQUIRIES:
Portmeirion Group PLC: | ||
Mike Raybould Chief Executive | +44 (0) 1782 743 443 | mraybould@portmeiriongroup.com |
David Sproston Group Finance Director | +44 (0) 1782 743 443 | dsproston@portmeiriongroup.com |
Hudson Sandler: | ||
Dan de Belder Nick Moore | +44 (0) 207 796 4133 | ddebelder@hudsonsandler.com nmoore@hudsonsandler.com |
Panmure Gordon: | ||
(Nominated Adviser and Broker) | +44 (0) 207 886 2500 | |
Freddy Crossley / Joanna Langley | Corporate Finance | |
James Stearns | Corporate Broking | |
N+1 Singer: | ||
(Joint broker) | +44 (0) 207 496 3000 | |
Peter Steel / Ben Farrow | Corporate Finance | |
Rachel Hayes | Corporate Broking | |