Acquisition

Walker Greenbank PLC
17 May 2001


17 May 2001




Walker Greenbank to expand fabric printing operations





Walker Greenbank PLC, the wallpaper and fabrics group, is set to make a major
expansion to its fabrics printing operations by taking over the business of
Strines Textiles.



Strines Textiles, part of Leeds Group plc and based in Stockport, has a strong
technical base for printing apparel and in particular camouflage materials
that will broaden the specialist furniture fabrics operations of Walker
Greenbank's Standfast subsidiary.



The move will allow an important consolidation in the UK fabrics industry,
creating a broader and stronger fabrics printing operation.



The acquisition, which is subject to consultation with the workforce at
Strines Textiles, is due to complete on 11 June. The initial cash
consideration is £125,000 with further instalments totalling a maximum of £
1,625,000 subject to completion accounts due to be paid between October 2001
and September 2003. Further cash consideration to a maximum of £750,000 will
also be due dependent on the performance of the Strines Textiles business over
the next three years.



In the year ended 30 September 2000, Strines Textiles made an operating loss
of £2,723,000 after charging exceptional costs of £1,579,000. The assets that
are the subject of the transaction were valued at £915,000 as at 31 March
2001.



It is intended, subject to consultation with the workforce, that the
businesses will be combined at Standfast's Lancaster facility where a number
of new jobs will be created by the additional volumes put through the factory.



David Medcalf, Chief Executive of Walker Greenbank, said:

'Standfast and Strines Textiles are two quality businesses but there is
undoubtedly overcapacity in UK fabrics printing. This much-needed
consolidation will allow us to build a strong industry-leading business with
excellent technical skills using modern equipment. It is a very important step
forward.'





For further information:



David Medcalf/John Sach                        John Rudofsky

Walker Greenbank PLC                        Helsen Communications

01442 234666                        020 8786 6699