28th Apr 2005 06:00
Embargoed: 0700hrs, 28 April 2005 International Brand Licensing plc Sale of Mountain Equipment International Brand Licensing plc ("IBL" or the "Group") announces the sale byits wholly owned Swiss subsidiary, International Brand Licensing AG, of theGroup's outdoor clothing and equipment brand, Mountain Equipment (the "Brand"),to Swiss Cutlery (UK) Limited which was entered into and completed on 27 April2005. The consideration for the sale was a sum of ‚£3m (less ‚£130,875.62 by wayof set off against advance royalty payments) which was paid in cash oncompletion.Acquired from Outdoor & Sports Company (Holdings) Limited ("OSC") for ‚£1.8m inJune 1999, IBL immediately licensed the Brand back to OSC and has benefited byway of increasing annual royalties as distribution expanded into Europe andlatterly, through third party licensees, into Japan. OSC is now a wholly ownedsubsidiary of Swiss Cutlery (UK) Limited.For the 6 months ended 30th June 2004, the Brand contributed ‚£0.2m in royaltyrevenue to IBL's consolidated revenues of ‚£1.3m and as at 30th June 2004, wasvalued in IBL's balance sheet at ‚£2.3m. IBL intends to use the proceeds of thesale to reduce bank debt, settle outstanding liabilities and to invest in theGroup's other brands.Tony Hutchinson, Chief Executive of IBL comments: "In terms of the royaltyrevenuesreceived over the past five years and the disposal price to Swiss Cutlery, thisrepresents an excellent deal for the company. The proceeds will be used toreduce the company debt,strengthen the balance sheet, and provide additional funds to invest in ourmajor property, Admiral."Admiral is distributed internationally though a network of licensee partners,and in the UK is licensed exclusively through ASDA. IBL recently announced afive year Admiral kit deal with Leeds United, to add to its sponsorships of theEngland, West Indies, and South African cricket teams.IBL intends to release its results for the year ended 31 December 2004 duringMay 2005.For further information please contact,Adam Reynolds / Tony HutchinsonInternational Brand Licensing plcTel. 020 7245 1100ENDINTERNATIONAL BRAND LICENSING PLCRelated Shares:
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