Acquisition of AromaWorks London

RNS Number : 9270V

Portmeirion Group PLC

15 August 2022

 

15 August 2022

Portmeirion Group PLC (the 'Group')

Acquisition of AromaWorks London

Portmeirion Group PLC, the designer, manufacturer and worldwide distributor of high quality homewares under the Portmeirion, Spode, Royal Worcester, Pimpernel, Wax Lyrical and Nambé brands is delighted to announce it has acquired the AromaWorks London brand, intellectual property and certain stock, trade and assets with no ongoing liabilities from AromaWorks Limited (company currently in Administration) ('AromaWorks'). 

AromaWorks manufactures a range of home fragrance products using essential oils in the health and wellbeing category with a retailer customer base in the UK and US.

The total consideration of £0.44 million for the intellectual property, inventory and certain fixed assets is payable in cash and has been financed from the Group's existing cash resources.  For the year ended 31 December 2021 (unaudited), AromaWorks had sales of £4.1 million and a headline profit before taxation of £0.3 million.

This acquisition will add further scale to our existing home fragrance business, Wax Lyrical, and we expect to deliver on cost synergies and cross-selling opportunities within the first twelve months.

Mike Raybould CEO commented:

"We are delighted to bring AromaWorks London into our family of brands. It has established an impressive base of UK and US customers in the last few years and is highly synergistic with our existing home fragrance business, Wax Lyrical. We have invested significantly in the last 2 years in our UK manufacturing and testing facilities and this gives us a great opportunity to further leverage both our production capabilities and our global sales infrastructure as part of our strategy to grow our sales alongside improving the Group operating margins over the next 3 years. AromaWorks has successfully opened its first US market customer account listings in the past six months and we look forward to supporting and enabling growth in that key market through our existing US sales and distribution operation."

Notes:   This announcement contains inside information for the purposes of the retained UK version of the EU Market Abuse Regulation (EU) 596/2014 ("UK MAR").

Enquiries:-

Portmeirion Group PLC:
Mike Raybould	[phone]	[e-mail]
Chief Executive David Sproston	[phone]	[e-mail]
Group Finance Director
Hudson Sandler:
Dan de Belder	[phone]	[e-mail]
Nick Moore		[e-mail]
Panmure Gordon (Nominated Adviser and Broker):	[phone]
Freddy Crossley	Corporate Finance
Rupert Dearden	Corporate Broking

Singer Capital Markets (Joint Broker):	[phone]
Peter Steel	Investment Banking
Rachel Hayes

 

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