PMP Portmeirion Group Plc

TIDMPMP

RNS Number : 4501F

Portmeirion Group PLC

15 July 2019

15 July 2019

Portmeirion Group PLC

("Portmeirion" or the "Company")

Acquisition of Nambé LLC

Portmeirion Group PLC (AIM: PMP), the manufacturer and worldwide distributor of high-quality homewares under the Portmeirion, Spode, Royal Worcester, Pimpernel and Wax Lyrical brands, is pleased to announce the acquisition of Nambé LLC ("Nambé"), a US based premium homewares business.

Highlights

   --     The Company has agreed to purchase Nambé, for a cash consideration of $12m. 

-- Nambé is a premium, branded US homewares business with reported sales of $18.0m and adjusted EBITDA of $1.1m in 2018.

-- The acquisition provides additional scale in the key US market and the Board expects to achieve both sales and cost synergies.

   --     The acquisition is expected to be earnings enhancing in the first full year of ownership. 

Information on Nambé

Nambé designs, sources, markets, and retails Nambé branded products in homewares. Nambé was founded in 1951 and its range now includes cutlery, glassware, dinnerware, kitchenware and home décor. Nambé's sales are largely concentrated in the US through wholesale channels, online and through eight retail stores across New Mexico and Arizona.

Strategic Rationale for the Acquisition

The acquisition provides the Company with additional scale in its key US market and strategically complements its existing US subsidiary while continuing to diversify the company into new homeware product categories. Portmeirion intends to leverage the Nambé product ranges through its existing US sales channels and global sales infrastructure. The Company also expects to benefit from the expertise of Nambé's contemporary design consultants across the Portmeirion brands and ranges. Further cost saving and production synergies are also expected. The acquisition is expected to be earnings enhancing in the first full financial year. The Company is also delighted that Nambé's key management team will continue in their roles and believe they will further strengthen our existing US based team.

Summary Financials

In the year to 31 December 2018, Nambé recorded sales of $18.0m, adjusted EBITDA of $1.1m, a reported loss before tax of $0.4m with a normalised adjusted profit before tax of $0.6m. As at 31 December 2018, Nambé reported total assets of $12.9m and net liabilities of $3.8m. The estimated net assets of the business at the date of acquisition, on a debt free, cash free basis, are $9.6m. The acquisition constitutes a substantial transaction pursuant to the AIM Rules for Companies.

Bank Facilities

The Company has agreed to purchase 100 per cent of the issued and outstanding membership interests of Nambé for a consideration of $12m on a cash free, debt free basis. The acquisition will be financed entirely through a new debt facility of GBP10m with Lloyds Banking Group repayable over a five-year period. Additionally, the Company has agreed terms to extend its existing overdraft by GBP3m.

Lawrence Bryan, Chief Executive, said:

"Having been working with Nambé for nearly a year on potential synergistic opportunities, we are delighted to acquire this historic US brand together with a strong management team. Nambé is synonymous with market leading design in homewares and we are hugely excited to take the brand on the next part of its journey. Portmeirion has a great track record of adding value through acquiring quality brands that can then be leveraged through our global sales infrastructure. We are looking forward to working with the Nambé team on growing the business."

Dick Steele, Non-Executive Chairman, said:

"We are excited to have acquired Nambé, the acquisition is highly complementary to our existing business and provides further access to the key US market. We see the acquisition as an exciting milestone for Portmeirion. The Board expects the acquisition to be earnings enhancing in the first full year of consolidation through top line growth along with sales and cost saving synergies."

The company will announce its interim results for the first half of 2019 on 1 August.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014 (MAR).

ENQUIRIES:

 
 Portmeirion Group PLC: 
 Dick Steele                    +44 (0) 1782 744   steele_clan@msn.com 
                                 721 
 Non-executive Chairman 
 Mike Raybould                  +44 (0) 1782 744   mraybould@portmeiriongroup.com 
                                 721 
 Group Finance Director 
 
 Hudson Sandler: 
 Dan de Belder                  +44 (0) 207 796    ddebelder@hudsonsandler.com 
                                 4133 
 Nick Moore                                        nmoore@hudsonsandler.com 
 Oenone Potter                                     opotter@hudsonsandler.com 
 
 Panmure Gordon 
 (Nominated Adviser and         +44 (0) 207 886 
  Broker):                       2500 
 Freddy Crossley / Joanna                          Corporate Finance 
  Langley 
 James Stearns                                     Corporate Broking 
 
 Cantor Fitzgerald Europe 
                                +44 (0) 207 894 
 (Joint Broker):                 7000 
 Phil Davies / Rick Thompson                       Corporate Finance 
 Caspar Shand Kydd                                 Sales 
 

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END

ACQUUVARKRABAUR

(END) Dow Jones Newswires

July 15, 2019 02:00 ET (06:00 GMT)

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