Portmeirion acquires rest of Canadian operations
Homewares manufacturer Portmeirion Group has acquired the remaining 50% of Portmeirion Canada from Royal Selangor, it announced on Thursday, meaning it now owns 100% of the company.
The AIM-traded firm said that as part of the acquisition, key licence distribution agreements in the Canadian marketplace were expected to continue, with the group also agreeing to purchase certain assets from Royal Selangor.
It said the total cash consideration payable was CAD 1m (£0.6m), which would be funded from its existing cash resources.
For the 12 months ended 30 June, Portmeirion Canada recorded sales of CAD 3.5m, and contributed around CAD 0.3m of net profit to the group's results.
As at 30 June, Portmeirion Canada reported unaudited net assets of CAD 2.3m.
Portmeirion Canada would continue to operate from its current office and warehouse facilities, and retain the combined workforce.
“We have successfully operated an associated company for our distribution operation in Canada for a number of years,” said chief executive officer Mike Raybould.
“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 the company had previously announced, Raybould said one of the uses of the recent equity raise proceeds was to build a more significant presence in the Canadian market.
“We see this acquisition as a strong opportunity to revitalise and grow this important market, particularly through further penetration of online channels.”
At 1417 BST, shares in Portmeirion Group were up 0.16% at 367.6p.