Zoa Corporation PLC
15 February 2001
Zoa Corporation plc
AIM Listed Zoa Corporation Plc has announced today that it has purchased some
assets including the use of the trading name of Gibbs and Palmer from the
receivers of Gibbs Palmer Holdings. The consideration for the acquisition was
£926,000 of which £600,000 relates to the freehold premises at Norwich. The
consideration was for cash of which £540,000 is deferred until 1st June 2001.
Gibbs Palmer were a £30m a year national supplier of garden centre products
serving the independent trade. The Norwich depot now purchased by Zoa was the
oldest established and largest depot in the Gibbs Palmer network and will form
the focus of Zoa's garden centre distribution business.
This is Zoa's first move into distribution business that is outside the
independent pet retail sector in which it predominantly operates.
Chairman Bob Evans said the garden centre products business requires the same
distribution skills and the same level of customer care as is required in the
pet product business and there are many shared customers between the two
trades. I expect to see greater utilisation of both warehousing and trucking
facilities following this acquisition. The Norwich depot will make a valuable
contribution to the existing pet distribution business in enhancing servicing
to customers throughout East Anglia previously served by the Staffordshire
Due the acquisition being only a small part of the larger Gibbs & Palmer
Holding business before the receivership, it is difficult to extract
meaningful information in relation to turnover and profitability relating to
the assets which are the subject of the acquisition.
Additionally Zoa announces the purchase of a factory at Bridgewater, Somerset
to produce feedstuffs for small domestic pets. The company paid £150,000 cash
for the assets at the factory, which was previously owned and operated by
Pascoe's Ltd. The Company expects sales of £3.4 million of feedstuff per annum
on single shift working and will employ 20 people at the site.
This is Zoa's first move into feedstuff manufacturer and it is expected to add
further products to the manufacturing range at Bridgewater over a two-year
roll out program.
Bob Evans comments that the manufacturing operation will ensure consistency of
quality, reduce the level of imports and should affect significant saving at
gross margin stage on the products involved.
For further information contact:
John Aviss 020 8665 6662
Boswell City Financial PR
Rodney Johnson 020 7583 2001