Acquisition of Emma Hardie Limited and TVR

RNS Number : 8331G

Creightons PLC

29 July 2021

 

For immediate release    29 July 2021

CREIGHTONS plc ("Creightons" or the "Company")

Acquisition of Emma Hardie Limited

and

Total Voting Rights

Acquisition of Emma Hardie Limited

Creightons plc (LSE: CRL), manufacturers of personal care, beauty, and fragrance products,   announces that it has acquired the entire share capital of Emma Hardie Limited including the Emma Hardie skincare brand.

Emma Hardie Limited sells products under the Emma Hardie Skincare brand and prides itself on creating natural, cruelty-free, innovative products.  Founded in September 2009, Emma Hardie Skincare has become an international, independent skincare brand with over 40 prestigious beauty awards with customers throughout the UK, Europe, USA, and Asia Pacific.

The consideration for the transaction is approximately £6.36 million, comprising £5 million in cash and the issue of 1,600,000 ordinary shares of 1p each in the Company ("New Ordinary Shares") at the volume weighted average middle market CRL quoted price for preceding 5 Business Days of 84.78 per share ("Consideration Shares").

If on the date of twelve months from completion the volume weighted average middle market quoted price of an Ordinary Share for the last 5 Business days prior to that date (as derived from the Daily Official List of London Stock Exchange Plc) is less than £1.25, then an additional amount shall be payable to the sellers in cash equal to such difference in price multiplied by the number of Consideration Shares issued. The Consideration Shares will be subject to a lock-in mechanism for twelve months.

Application will be made by the Company to the Financial Conduct Authority and to the London Stock Exchange for the New Ordinary Shares to be admitted to the Official List and to trading on the London Stock Exchange's main market for listed securities ("Admission").  It is expected that Admission will become effective and dealings will commence on or around 4 August 2021.

The gross assets of Emma Hardie Limited as recorded in the most recent available accounts to 30 June 2020 were £2,463,895. The profits before tax of Emma Hardie Limited for the year ended 30 June 2020 were £46,819. The turnover was £3,834,771.

The acquisition represents an important development for Creightons plc with the addition of a premium skincare brand with an established consumer base. The addition of a premium skincare brand strengthens our brand portfolio and offering by taking the business into a higher end group of retailers and digital platforms.  There are both manufacturing and management synergies that will drive a higher return in the brand, as well as significant opportunities for extending the distribution of the brand in the UK market and in multiple international markets. Our in-house development and brand teams will also be able to extend the bandwidth of the brand offering, to drive sales expansion and margin opportunities.

Creightons plc has retained the services of Barry Cook, former Managing Director of Emma Hardie Limited in order to facilitate a smooth transition and to develop new sales opportunities.  

Mr Bernard Johnson Managing Director of the Company commented: 'We are pleased to announce the acquisition of Emma Hardie Limited which represents a significant investment is a premium skincare business with an impressive digital customer base. It is consistent with our strategy to develop our branded business which we have identified as a key driver for growth in the future.' 

Total Voting Rights

On Admission, the number of shares in issue will be 66,452,243 ordinary shares of 1p each and therefore, the total number of voting rights in the Company will be 66,452,243.

The above statement of voting capital may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest, or a change to their interest, in the Company under the FCA's Disclosure Guidance and Transparency Rules.

This announcement contains inside information as stipulated under the UK version of the Market Abuse Regulation No 596/2014 which is part of English law by virtue of the European (Withdrawal) Act 2018, as amended. On publication of this announcement via a regulatory information service, this information is considered to be in the public domain.

Enquiries - Analysts and Investors:

Nicholas O'Shea, Director, Creightons Plc  01733 281000

Roland Cornish / Felicity Geidt, Beaumont Cornish Limited    0207 628 3396

Press Nigel Szembel, Anagallis Communications Limited  07802 362088  [e-mail]

Authorised for immediate release

ND O'Shea
Director
28/07/2021

 

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