Acquisition (5463W)

TIDMSNCL

RNS Number : 5463W

Sinclair (William) Holdings PLC

22 November 2010

William Sinclair Holdings PLC

("William Sinclair" or "the Company")

Acquisition of Growing Success Organics and Decorative Aggregates business

William Sinclair, one of the UK's leading suppliers of growing media, is pleased to announce the acquisition of the assets and trade of Growing Success Organics ("GSO"), the market leader in specialist, environmentally friendly, garden care products. The business was acquired from Monro Horticulture Limited.

The Company expects the GSO range to generate sales of approximately GBP3 million in the year ended 30 September 2011 and believes that margins can be improved as a result of the significant synergies available within manufacturing, sales, marketing and distribution, all of which fit well with the Company's existing core business.

The Directors of the Company believe that the acquisition will be earnings enhancing during the current financial year and will provide strong growth potential for the future, as GSO will benefit from Sinclair's strong financial position and its wider reach in the horticulture market.

Prior to the acquisition, William Sinclair and GSO had already signed a distribution agreement to start to increase the number of outlets where GSO products can be sold by leveraging the Company's own extensive retail sales network. GSO currently supplies its range of ecologically safe pest controls and high quality specialist gardening products to an established customer base including Homebase and B&Q.

GSO's environmentally sensitive approach complements Sinclair's existing position in the growing media market. The Company's recent introduction of Sincroboostplus, a synthetic peat product, as well as the growth in sales of New Horizon, its award winning brand leader in the peat-free market, demonstrate its own commitment to minimising the environmental impact of its activities.

Bernard Burns, Chief Executive, William Sinclair Sinclair Holdings PLC, commented:

"This acquisition marks the next step in the on-going expansion of William Sinclair. We continue with our strategy to become the leading company in the horticulture sector and will continue to consider further acquisition targets.

"The acquired business will integrate seamlessly within William Sinclair's operations. We look forward to securing the supply of these premium products to a wider customer base while ensuring levels of customer service remain the best in the industry."

For further information:

www.william-sinclair.co.uk

William Sinclair Holdings Plc Tel: 01522 537561

Bernard Burns, Chief Executive

Peter Williams, Finance Director

Arbuthnot Securities Tel: 020 7012 2000

Andrew Kitchingman

Ben Wells

Notes:

-- William Sinclair's brands include J Arthur Bowers and the award winning New Horizon. New Horizon has won nine Which? Best Buy awards.

-- William Sinclair recently launched its peat free alternative under the trade name SuperFyba. With similar characteristics to peat, SuperFyba looks and behaves like peat, but is made from a renewable by-product from the production of green compost.

-- Sinclair's significant investment in new technologies has secured an end use for this by-product, avoiding the need for it to go to landfill.

-- Approved by Nottingham University, SuperFyba is already being used by a number of customers and many professional growers are taking deliveries for their own in house trials.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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