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Portmeirion Group (PMP)


Monday 15 July, 2019

Portmeirion Group

Acquisition of Namb� LLC

RNS Number : 4501F
Portmeirion Group PLC
15 July 2019



15 July 2019



Portmeirion Group PLC

("Portmeirion" or the "Company")

Acquisition of Nambé LLC



Portmeirion Group PLC (AIM: PMP), the manufacturer and worldwide distributor of high-quality homewares under the Portmeirion, Spode, Royal Worcester, Pimpernel and Wax Lyrical brands, is pleased to announce the acquisition of Nambé LLC ("Nambé"), a US based premium homewares business.




·     The Company has agreed to purchase Nambé, for a cash consideration of $12m.

·     Nambé is a premium, branded US homewares business with reported sales of $18.0m and adjusted EBITDA of $1.1m in 2018.

·     The acquisition provides additional scale in the key US market and the Board expects to achieve both sales and cost synergies.

·     The acquisition is expected to be earnings enhancing in the first full year of ownership.


Information on Nambé


Nambé designs, sources, markets, and retails Nambé branded products in homewares. Nambé was founded in 1951 and its range now includes cutlery, glassware, dinnerware, kitchenware and home décor. Nambé's sales are largely concentrated in the US through wholesale channels, online and through eight retail stores across New Mexico and Arizona.


Strategic Rationale for the Acquisition


The acquisition provides the Company with additional scale in its key US market and strategically complements its existing US subsidiary while continuing to diversify the company into new homeware product categories. Portmeirion intends to leverage the Nambé product ranges through its existing US sales channels and global sales infrastructure. The Company also expects to benefit from the expertise of Nambé's contemporary design consultants across the Portmeirion brands and ranges. Further cost saving and production synergies are also expected. The acquisition is expected to be earnings enhancing in the first full financial year. The Company is also delighted that Nambé's key management team will continue in their roles and believe they will further strengthen our existing US based team.


Summary Financials


In the year to 31 December 2018, Nambé recorded sales of $18.0m, adjusted EBITDA of $1.1m, a reported loss before tax of $0.4m with a normalised adjusted profit before tax of $0.6m. As at 31 December 2018, Nambé reported total assets of $12.9m and net liabilities of $3.8m. The estimated net assets of the business at the date of acquisition, on a debt free, cash free basis, are $9.6m. The acquisition constitutes a substantial transaction pursuant to the AIM Rules for Companies.


Bank Facilities


The Company has agreed to purchase 100 per cent of the issued and outstanding membership interests of Nambé for a consideration of $12m on a cash free, debt free basis. The acquisition will be financed entirely through a new debt facility of £10m with Lloyds Banking Group repayable over a five-year period. Additionally, the Company has agreed terms to extend its existing overdraft by £3m.


Lawrence Bryan, Chief Executive, said:


"Having been working with Nambé for nearly a year on potential synergistic opportunities, we are delighted to acquire this historic US brand together with a strong management team. Nambé is synonymous with market leading design in homewares and we are hugely excited to take the brand on the next part of its journey. Portmeirion has a great track record of adding value through acquiring quality brands that can then be leveraged through our global sales infrastructure. We are looking forward to working with the Nambé team on growing the business."


Dick Steele, Non-Executive Chairman, said:


"We are excited to have acquired Nambé, the acquisition is highly complementary to our existing business and provides further access to the key US market. We see the acquisition as an exciting milestone for Portmeirion. The Board expects the acquisition to be earnings enhancing in the first full year of consolidation through top line growth along with sales and cost saving synergies."


The company will announce its interim results for the first half of 2019 on 1 August.


This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014 (MAR).




Portmeirion Group PLC:



Dick Steele 

+44 (0) 1782 744 721

[email protected]

Non-executive Chairman



Mike Raybould 

+44 (0) 1782 744 721

[email protected]

Group Finance Director






Hudson Sandler:



Dan de Belder

+44 (0) 207 796 4133

[email protected]

Nick Moore


[email protected]

Oenone Potter


[email protected]




Panmure Gordon



(Nominated Adviser and Broker):

+44 (0) 207 886 2500


Freddy Crossley / Joanna Langley 


Corporate Finance

James Stearns


Corporate Broking




Cantor Fitzgerald Europe



(Joint Broker):

+44 (0) 207 894 7000


Phil Davies / Rick Thompson 


Corporate Finance

Caspar Shand Kydd





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