24th Jun 2021 20:34
UP Global Sourcing Holdings PLC - Oldham, Greater Manchester-based consumer brands owner trading as Ultimate Products - Enters agreement to buy kitchen scales maker Salter Brands Ltd from FKA Brands Ltd. The company has agreed to acquire Salter for an initial cash consideration of GBP32.0 million, on a debt free, cash free and normalised working capital basis. Further deferred consideration of GBP2.0 million is payable in cash in four tranches over 24 months from completion of the acquisition.
In addition, UP Global proposes equity fundraise of up to GBP15.0 million, comprising a proposed placing of new shares and an offer for subscription through the PrimaryBid platform at a price of 210 pence each. Says net proceeds of the fundraise will be used to fund part of the initial consideration.
Chief Executive Officer Simon Showman says: "Salter is an historic brand with an outstanding heritage and a fantastic reputation for producing high quality homeware products. As such, it will enhance and diversify our existing exceptionally strong portfolio of value‑focused consumer goods brands. We already have a close relationship with Salter and its customers as a result of our long-standing licensing arrangement and we look forward to growing the brand further both in the UK and internationally in the coming years."
Current stock price: 214.00 pence
Year-to-date change: up 78%
By Arvind Bhunjun; [email protected]
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