LONDON: Portmeirion Group PLC has acquired the remaining 50% of the issued share capital of Portmeirion Canada Inc. from Royal Selangor Inc. This purchase means the Group now owns 100% of the issued share capital of Portmeirion Canada, a news release said.
As part of the acquisition, key licence distribution agreements in the Canadian marketplace are expected to continue. The Group has also agreed to purchase certain assets from Royal Selangor.
The total cash consideration payable by the Group is CA$1.0 million (£0.6 million) which is to be funded from the Group’s existing cash resources.
For the 12 months to 30 June 2020, Portmeirion Canada recorded sales of CA$3.5 million (unaudited) and contributed approximately CA$0.3 million of net profit to the Group results. As at 30 June 2020, Portmeirion Canada reported unaudited net assets of CA$2.3 million.
Portmeirion Canada will continue to operate from its current office and warehouse facilities and retain the combined workforce.
Mike Raybould, Chief Executive commented: “We have successfully operated an associated company for our distribution operation in Canada for a number of years. By acquiring the remaining 50% share of Portmeirion Canada and certain trade and assets of Royal Selangor, we obtain control over the selling and distribution process in this market and the rights to key licence distribution agreements. As we previously announced, one of the uses of the recent equity raise proceeds was to build a more significant presence in the Canadian market and it is therefore pleasing to have achieved this strategic goal in such a short timeframe. We see this acquisition as a strong opportunity to revitalise and grow this important market, particularly through further penetration of online channels.”
Portmeirion is the designer, manufacturer and worldwide distributor of high quality homewares under the Portmeirion, Spode, Royal Worcester, Pimpernel, Wax Lyrical and Nambé brands.