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[July 2001]
Further Acquisition for Waterford Wedgwood
Waterford Wedgwood PLC announced on 3 July 2001 that it had reached an agreement to acquire 86.5% of Ashling Corporation from Fitzwilton Ltd for a consideration of US$9.5 million. The consideration will be satisfied by the issue of 9,331,733 new stock units in Waterford Wedgwood PLC at a price of 1.2 euros each, being the average share price over the past six months. In addition, there is an element of deferred consideration, subject to a maximum of US$2.6 million, that will be payable in 2002 depending on the level of operating profit achieved by Ashling in the year ended 31 December 2001.
Ashling - which is based in Anaheim, CA, USA - specialises in designing, sourcing and marketing table and bed linen under the trading name 'W-C Designs'. It has had a licence from Waterford Wedgwood to sell Waterford Linens since 1995 and Wedgwood Linens since early 2001.
Ashling achieved sales of US$35.2 million for the year ended 31 December 2000 and generated operating profits of US$2.7 million. Sales of Waterford Linens were US$12 million in 2000. The company has shown annual compound sales growth averaging 16% since 1996. Nets assets of Ashling Corporation were US$5 million at 31 December 2000, including debt of US$4.5 million. The acquisition is expected to be earnings enhancing in 2001.
ENDS