Acquisition of Dorma brand
29 July 2008
Dunelm Group plc ("Dunelm" or the "Company")
Acquisition of the Dorma brand and associated rights
Dunelm Group plc ("Dunelm" or the "Company"), the leading out-of-town specialist homewares retailer, announces that it has today entered into an agreement to acquire the Dorma brand and associated rights from Dawson International plc ("Dawson") for a cash consideration of £5 million.
Dorma is one of the world's leading brands in high quality bedlinen and associated soft furnishing products and Dunelm currently sells a number of exclusive Dorma ranges both through its superstores and its website (www.dunelm-mill.co.uk). This acquisition will further strengthen Dunelm's specialist proposition in homewares retailing.
Under the terms of the agreement, Dunelm will acquire ownership of the Dorma brand and trademarks on a worldwide basis, an extensive design library, and the Dorma domain name (www.dorma.co.uk). Dunelm will also receive modest royalty fees from various overseas licensing agreements over the medium term. Dawson will retain the right to operate a limited number of concessions in UK department stores under the Dorma brand for an interim period only and until no later than January 2011, giving Dunelm exclusive use of the brand thereafter.
Will Adderley, Chief Executive of Dunelm, commented:
"We are delighted to have acquired the Dorma brand, one of the world's leading bed linen brands.
"The acquisition will enable us to control and develop what is an important brand to Dunelm and will further strengthen our position as a specialist in homewares retailing. It also provides a number of interesting growth opportunities for the medium term."
- Ends -
For further information, please contact:
|
Dunelm Group plc |
0116 2644 356 |
|
Will Adderley, Chief Executive |
|
|
David Stead, Finance Director |
|
|
|
|
|
Hogarth Partnership |
020 7357 9477 |
|
John Olsen |
|
|
Fiona Noblet |
|
Notes to Editors
Dunelm is amongst the top 10 retailers operating in the £12bn UK homewares market. The Group has 89 stores, branded Dunelm Mill, of which 76 are out-of-town superstores. Dunelm employs over 5,500 full and part time staff, the vast majority of whom work in the stores.
Dunelm was founded in 1979 as a market stall business, selling ready made curtains. The first shop was opened in Leicester in 1984 and over the following years the business developed into a successful chain of high street shops in the Midlands specialising in soft furnishings. The first Dunelm superstore was opened in 1991, leading to the Company's move into the broader homewares market.
The superstores provide an average of 28,000 sq ft of selling space and offer an extensive range of approximately 20,000 products across a broad spectrum of categories, including bedding, curtains, gifts and seasonal items, cushions, bathroom products, kitchenware, quilts, pillows and rugs. Dunelm also specialises in offering a wide range of fabrics, made to measure curtains and a frequently changing series of special buys. The directors are passionate about ensuring that all ranges live up to Dunelm's philosophy of offering customers "Simply Value for Money".
Dunelm also has an on-line store (www.dunelm-mill.com) with over 9,000 products available.
Dunelm is listed on the London Stock Exchange (DNLM.L).
This information is provided by RNS
Latest directors dealings
- 10 hours ago Savannah Energy
- 11 hours ago Buccaneer Energy PLC
- 11 hours ago Savannah Energy
- 12 hours ago Carclo
- 12 hours ago Schroder Japan Growth Fund