Acquisition

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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