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[April 2009]
Portmeirion Acquires Certain Assets of Royal Worcester and Spode
Portmeirion Group PLC has acquired the intellectual property (excluding any rights relating to Jamie Oliver products or licences) and the trade names of Royal Worcester and Spode from The Porcelain and Fine China Companies Limited (in Administration). In addition it has acquired the US inventory previously belonging to the US subsidiary of Royal Worcester and Spode Limited.
The total consideration of £3.2 million for the intellectual property and the inventory is payable in cash which will be financed from the group's own cash resources and borrowings provided by Burdale Financial Limited.
The acquisition of these brands is expected to generate at least £7 million of additional sales for the remaining eight months of the current year ending 31 December 2009. On an annualised basis, this is expected to increase to at least £12 million of additional sales.
Portmeirion and Spode have a long history of innovation and creativity with Spode having originated the production of fine bone china and perfecting blue underglaze printing techniques and Portmeirion having grown successfully through its historic designs such as Botanic Garden and through the success of its new designs such as the Sophie Conran range. This will form the strongest collection of pottery brands in Stoke-on-Trent and bring together the best in British design, heritage and skill, said the company.
Commenting on the acquisitions, Dick Steele, Chairman of Portmeirion, said: "We are very excited at the opportunities presented by the Royal Worcester and Spode brand names and patterns. Blue Italian, Christmas Tree, Evesham and others will be reinvigorated under Portmeirion; these are major patterns which will complement our existing offering of heritage and contemporary ranges. We will source or manufacture these important designs as appropriate”.
ENDS