4imprint Group PLC
07 September 2006
4imprint Group plc
Purchase of the Supreme Group
4imprint Group plc ('4imprint') announces today that it has agreed, subject to
Shareholder approval, to acquire Supreme Holdings Limited from Blue 11 Limited.
The Supreme Group, ('Supreme') based in Blackpool, specialises in the
manufacture and wholesaling of promotional products.
Unaudited management accounts for the year ending 31 July 2006 show Supreme's
sales were £12 million and operating profits were around £1.4 million.
The total consideration is £5 million. £4 million will be payable in cash on
completion and the remaining £1 million, plus interest of £0.09 million, will be
deferred to 1 July 2008. 4imprint will also assume responsibility for the net
debt in Supreme at completion, expected to be around £7 million.
4imprint intends to merge its complementary Trade Division with Supreme to
create a business which is expected to have sales of around £25m and operating
profits around £3.0m. In addition, synergies arising from the merger are
expected to be around £1.5m/annum. The combined business will be managed
separately from the rest of the 4imprint Group. It will have its own Board of
Directors whose Chairman will be Ken Minton and whose Chief Executive will be
Russell Vaughan. Mr Vaughan, the present CEO of Supreme, is 46 years old and
has wide and successful experience of the promotional products business.
4imprint intends in the medium term to separate the combined Supreme/Trade
business from the 4imprint Group, by way of de-merger or flotation.
The proposed acquisition constitutes a Class 1 transaction for the purposes of
the Listing Rules of the UKLA. Accordingly, completion is subject to the
approval of 4imprint Shareholders. Details of the time, date and venue of the
Extraordinary General Meeting of 4imprint to consider the acquisition will be
set out in a circular which will be prepared and posted to Shareholders in due
course.
The Supreme Group made a profit before tax of £0.8 million for the year ended 31
July 2005 and at that date had gross assets of £16.2 million (including trade
and intercompany receivables of £1.8 million and £2 million, respectively, which
are excluded from the acquisition).
Ken Minton, 4imprint Executive Chairman said:
'We are very pleased that Supreme and Russell Vaughan and his team are to join
the 4imprint Group. Supreme has a record of strong organic growth of sales and
profits.
The merger of Trade and Supreme, together with the intended subsequent exit of
the combined business from 4imprint, should provide greater focus and benefits
for our customers and increase in value for 4imprint shareholders.'
For further information, please contact:
4imprint Group plc
Ken Minton, Chairman
Gillian Davies, Group Finance Director
Tel: +44 (0) 161 786 0424
This information is provided by RNS
The company news service from the London Stock Exchange
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