RM to form joint venture with

RNS Number : 9678L

RM PLC

17 May 2010

 



17 May 2010

RM to form joint venture with LEGO Education

RM has signed a letter of intent with LEGO Education which sets out the two companies' intention to create a joint venture which will become the exclusive distributor of LEGO Education products to education customers across Europe.

The joint venture will take the form of a new company, to be called LEGO Education Europe Ltd, which will be owned 51% by the LEGO Group and 49% by RM, with day-to-day operational activities provided by RM's Education Resources division. As part of the proposed agreement between LEGO Education and RM, the new company would hold exclusive European education distribution rights for LEGO Education products, initially for ten years from January 2011.

LEGO Education Europe will build on the strong distribution network currently operated by RM Group company DACTA. As well as continuing to provide LEGO Education products through this channel, the new company will establish an online LEGO Education community, and provide further unique education support, training and materials for the products.

Terry Sweeney, Chief Executive of RM, said:

"Through DACTA, RM has already established a strong presence selling and supporting LEGO Education products in Europe - there's still plenty of opportunity for growth though. Working together, RM and LEGO Education's objective is both to increase sales and to develop a more distinctive and valuable education offer. Both companies share similar values and a commitment to providing an excellent customer experience. I look forward to extending our relationship."

Jacob Kragh, President of LEGO Education, said:

"LEGO Education products are gaining increasing recognition for supporting 21^st century skills. When we were looking to provide more value to the education establishments who choose our products, it was clear that RM had a lot to offer. The RM Group is a leader in education solutions and, under RM's ownership, DACTA has clearly demonstrated its capabilities as a specialist distributor of our products."

For further information, please contact:

Iain McIntosh/Phil Hemmings, RM plc	08450 700300
Chris Blundell/Franziska Boehnke, Brunswick	020 7404 5959

Jan Christensen, the LEGO Group                                   [phone]

Notes:

1.   The RM Group is a leading provider of educational solutions that help teachers to teach and learners to learn. RM works closely with educationalists to create new products, processes and technology which improve education. RM is listed on the main market of the London Stock Exchange under the symbol RM.L, ISIN GB0002870417. Further details are available at www.rm.com/investors and through the Group's investor blog at rminvestors.wordpress.com

2.   DACTA was acquired by RM in May 2007. The Company's focus is supplying branded products, supported with unique educational materials, to European education markets. As well as LEGO Education products, DACTA provides products from TOLO Education and Plan Education.

3.   LEGO® Education is a division in the LEGO Group, based in Billund, Denmark. The division was established in 1980 in response to demands from childcare practitioners, and today it develops educational solutions for children and students from 1½ to 16 years and beyond. LEGO Education is committed to the development of children's creative, problem-solving and teamwork abilities trough its solutions, which are particularly suited for teaching science, technology, engineering and maths subjects. Solutions can be purchased through specialised educational distributors in more than 50 countries. www.LEGOeducation.com

 

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