13th Oct 2006 17:59
Findel PLC13 October 2006 13 October 2006 Findel PLC Acquisitions Findel PLC, one of the country's leading Home Shopping and Educational Suppliesbusinesses, is pleased to announce that it has acquired the following businessesand assets from the Administrators or Administrative Receivers of certaincompanies within the Group comprised of European Home Retail plc and itssubsidiaries ("EHR"). • the trading business and assets of Kitbag Limited, one of Europe's largest online sports retailers; • the trading business and assets of I Want One Of Those.com Limited, one of the UK's most visited gifts and gadgets website; • the remaining 40% of the share capital of Home Farm Hampers Limited not already owned by Findel; • the trading business and assets of Kleeneze UK Limited, a leading network marketing company; and • certain other trading assets comprising principally the Cabouchon brand name and the infrastructure assets required for the Home Farm business The total consideration of £34m was satisfied in cash. The unaudited net assetsrelating to the businesses acquired were £19m.The acquired businesses hadunaudited revenues of £113m in the year to 30 April 2006. The acquisitions areexpected to be earnings enhancing in the first full financial year commencing 1April 2007. The acquisitions are firmly in line with the Company's stated strategy ofdeveloping its cash with order and internet businesses to complement the currenthome shopping division and increase the utilisation of its assets. • Kitbag is an internet retailer selling a wide range of sportswear products from the leading sports brands. In addition to its own website www.kitbag.com. Kitbag also has the exclusive rights to operate the official website stores for FC Barcelona, Reebok, Manchester United, Chelsea, Celtic and Nike Football. Unaudited annual turnover rose by 47% in the year ended 30 April 2006 to £14.3m (2005, £9.7m) with an unaudited EBITDA loss in that year of £0.5m. • I Want One Of Those ("IWOOT") is one of the most frequently visited internet retailers, selling a wide range of gifts and gadgets via its website www.iwantoneofthose.com. Unaudited annual turnover rose by 49% in the year ended 30 April 2006 to £10m (2005, £6.6m) with an unaudited EBITDA loss in that year of £0.6m. The acquisitions of Kitbag and IWOOT significantly enhance Findel's range ofinternet operations, an area Findel has identified for growth, whilst increasingits market share in the increasingly important cash with order home shoppingmarket. In addition, the acquisitions of Kitbag and IWOOT will materially add toFindel's systems and know how in Internet retailing and bring strong managementteams who are highly experienced in this fast growing sector. • Home Farm Hampers is a Christmas savings club whereby customers save regularly for shopping vouchers, food hampers and non-food items to be supplied to them shortly prior to Christmas. It was established as a jointly owned enterprise with Findel in 1986. • Kleeneze is a network marketing company established in the UK in 1923. It offers a range of over 1,500 home and personal care products presented through a variety of catalogues and sold through a network of over 14,000 self-employed distributors in the UK, Ireland, Netherlands and Germany. Kleeneze had unaudited revenues of £89m in the year ended 30 April 2006 contributing unaudited EBITDA of £6m. The acquisition of Kleeneze provides Findel with a further strong home shoppingbrand, with considerable potential for integration, working capital and othersynergistic benefits alongside the Group's existing operations. In its audited accounts for the year ended 30 April 2005, the entire EHR Grouphad sales of £175.9m and a net profit before taxation of £5.9m. The net profitincluded non operating exceptional profits of £1.4m. At the most recent balancesheet date of 31 October 2005 it had gross assets of £80.6m. On 30 June 2006 EHR announced that as a result of the placing in administrationof the voucher provider to its subsidiary Farepak it would face a peak borrowingrequirement above its bank facilities. On 23 August 2006 EHR announced that ithad requested suspension of its shares as no conclusion had been reached withits bankers over the provision of additional finance. On 13 October 2006 EHR announced the Appointment of an Administrative Receiverto European Home Retail plc, noting that this had been as a result of theappointment of an Administrator by its subsidiary Farepak, and an inability toreach a funding agreement with its bankers. Findel is confident that the businesses which are being acquired, are strong andcan flourish under Findel's management and contribute to the overall strength ofthe Findel Group. Findel is not acquiring the Farepak business. Patrick Jolly, CEO of Findel PLC said: "These acquisitions are directly in line with our stated strategy to grow ourhome shopping business profitably through bolt on acquisitions and maximise thereturn on the assets that division employs. We have identified substantialopportunities for both cost and revenue synergies and working capitalefficiencies which will be realised over the medium term. The Board isconfident that these acquisitions will enhance the Group's earnings per shareand drive shareholder value." For further information please contact: Patrick Jolly,Chief Executive,Findel plcTel: 01943 864686 David DuttonGroup Finance DirectorFindel plc01943 864686 Keith Chapman,Chairman, Findel plcTel: 01943 864686 Jonathon Brill/Billy Clegg,Financial DynamicsTel: 020 7269 7170 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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