Acquisition

McBride PLC
26 February 2007

McBride plc



26 February 2007


Acquisition of Henkel's European private label household products business


McBride plc ('McBride') today announces the proposed acquisition of the whole of
Henkel's European private label household products business which will
significantly extend McBride's business in key western and central European
markets and in the growing automatic dishwashing and specialist household
cleaning sectors.


Acquisition highlights


•         In line with McBride's strategy to expand its European business

•         Enhances McBride's position in the heart of Western Europe and in the
growing discount distribution channel

•         Includes a large, modern factory in Luxembourg producing automatic
dishwashing products

•         Provides considerable scope to improve efficiency, working capital and
asset utilisation through improved procurement and capacity utilisation and
leveraging existing overheads

•         In the financial year ended 31 December 2006, the businesses to be
acquired reported revenues of £92.5 million and Acquired Operating Profit of
£4.7 million(1)(2)

•         Total cash consideration of up to £39.3 million on a debt and cash
free basis, including up to £4.7 million payable subject to meeting certain
performance criteria, to be funded from existing group resources(1)

•         Expected to enhance earnings per share in the first full financial
year of ownership(3)


Information on the acquired business


The transaction involves the acquisition from Henkel of Chemolux S.a.r.l ('
Chemolux'), a major private label supplier based in Luxembourg, together with a
small private label household products business and relevant assets in the UK
(together the 'Acquired Business'). Following this transaction Henkel will focus
on their core branded products.


Chemolux


Chemolux is based in Luxembourg and is focused on the production and sale of
automatic dishwashing tablets and associated products. Automatic dishwashing
products are produced in both private label and branded formats with private
label products sold to Chemolux's end customers and branded products sold to
Henkel. McBride will continue with all these activities after the acquisition,
including the supply of branded automatic dishwashing products to Henkel under a
long term manufacturing contract. The business also sells a number of other
products, particularly laundry powders and liquids, which are currently sourced
from a number of other factories, the production of which is intended to
transfer to McBride's existing production facilities over the next two years.


Chemolux is active in most major European markets where its main customers are
discount retailers. Chemolux has 270 employees.


UK business


The UK business and assets are owned by Henkel Limited and include a production
facility in Coventry. It is a provider of private label household cleaning
products particularly sold in trigger format and also sources for onward sale
various other private label household products. Its customers are the major UK
grocery retail chains.120 UK employees will transfer to McBride.


Financial information


In the year ended 31 December 2006, the Acquired Business reported audited
consolidated revenues of £92.5 million, operating profit of £4.1 million and
Acquired Operating Profit of £4.7 million(1)(2). At 31 December 2006, the gross
assets of the businesses being acquired were £35.3 million(1).


Terms of the acquisition


The transaction is to be effected by the acquisition of the whole of the issued
share capital of Chemolux and the acquisition or transfer of the private label
household products business and certain fixed assets, inventory, contracts and
other assets of Henkel Limited.


Total consideration for the Acquired Business is up to £39.3 million on a debt
and cash free basis, all payable in cash, including up to £4.7 million payable
over 12 months from completion, subject to meeting certain criteria including
the performance of the business(1).


The acquisition remains subject to the approval of the German competition
authorities which is expected to be received by April 2007 at which point the
transaction will complete.


Impact of the acquisition


The Acquired Business will be fully integrated into McBride's existing Western
Continental Europe and UK divisions. Further, McBride intends to continue
manufacturing operations in both Luxembourg and Coventry.


There are expected to be good opportunities to improve the efficiency of the
current operations through integration with the existing facilities of the group
and the in house production of certain bought in products.


There will be a non-recurring cost of around £2 million related to integrating
the Acquired Business into McBride, which is expected to be incurred in full in
the year ending 30 June 2007.


Commenting on the acquisition, McBride's chief executive Miles Roberts said:


'This acquisition provides an excellent base to considerably expand our position
in the growing machine dishwash product and discount retail sectors. It will
materially strengthen our Western Continental Europe division and support our
goal to be the preferred supplier to European retailers of private label
household and personal care products. I am confident that this transaction will
add considerable value to McBride and our shareholders over the coming years. '



For further information please contact:


McBride plc
Miles Roberts, Chief Executive                                     07748 180076
Bob Beveridge, Finance Director                                    07876 593182

Financial Dynamics                                                 020 7831 3113
Andrew Dowler



(1)                 Based on an assumed exchange rate of €1.50:£1.

(2)                 Acquired Operating Profit represents the consolidated profit
before interest and tax of the Acquired Business extracted from audited
financial information for the year ended 31 December 2006 excluding management
and other charges, other operating income and expenses, restructuring charges
and adjusted for the contractual structure applying following acquisition.

(3)                 The statement regarding enhancement of earnings per share is
before synergies, one-off costs associated with the acquisition and amortisation
of acquired intangible assets. In addition, no statement in this announcement is
intended to constitute a profit forecast for the financial years ending 30 June
2007 or 30 June 2008 or any other period, nor should any statements be
interpreted to mean that earnings or earnings per share will necessarily be
greater or lesser than those for the relevant preceding financial periods of
McBride. Rather, these statements should be construed as references to potential
enhancements to the earnings that might otherwise have been earned during the
relevant financial period.


                      This information is provided by RNS
            The company news service from the London Stock Exchange