Portmeirion Group PLC Acquisition in Portmeirion Canada (9802V)
August 13 2020 - 2:00AM
UK Regulatory
TIDMPMP
RNS Number : 9802V
Portmeirion Group PLC
13 August 2020
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 (GBP0.6 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 +44 (0) 1782 743 mraybould@portmeiriongroup.com
Chief Executive 443
David Sproston +44 (0) 1782 743 dsproston@portmeiriongroup.com
Group Finance Director 443
Hudson Sandler:
Dan de Belder +44 (0) 207 796 ddebelder@hudsonsandler.com
Nick Moore 4133 nmoore@hudsonsandler.com
Panmure Gordon:
(Nominated Adviser and +44 (0) 207 886
Broker) 2500
Freddy Crossley / Joanna Corporate Finance
Langley
James Stearns Corporate Broking
N+1 Singer:
+44 (0) 207 496
(Joint broker) 3000
Peter Steel / Ben Farrow Corporate Finance
Rachel Hayes Corporate Broking
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END
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August 13, 2020 02:00 ET (06:00 GMT)
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