International Greetings PLC Sale of non-licensed division of Alligator Books (1805Z)
February 04 2014 - 1:00AM
UK Regulatory
TIDMIGR
RNS Number : 1805Z
International Greetings PLC
04 February 2014
4(th) February 2014
International Greetings PLC (the "Group")
Completion of sale of non-licensed division of Alligator
Books
International Greetings PLC, one of the world's leading
designers, manufacturers, importers and distributors of gift
packaging and greetings, stationery and creative play products
announces the completion of the sale, to management, of the
non-licensed segment of Alligator Books. Alligator Books is a
trading division of International Greeting's UK based subsidiary
business Anker; Anker will retain and develop the larger, licensed
segment of Alligator Books.
The transaction, comprising the sale of the business IP and
assets of the non-licensed segment of Alligator Books, will result
in an immediate cash inflow of GBP0.6m, with a further opportunity
of phased payments totaling up to GBP0.5m to be received by the end
of January 2015.
The transaction will have a modest impact on the Group's short
term profitability, mitigated by synergy benefits within Anker.
Under the terms of the transaction, the Group will provide
logistics services to the Purchaser, for a minimum period of 3
years. This is expected to generate over GBP1m of revenue during
the period, also therefore mitigating otherwise potentially lost
contribution. Additionally, agreement has also been reached with
the Purchaser for the Group to cost effectively utilise
intellectual property within the non-licensed division in markets
outside of the UK.
The sale of the non-licensed segment reflects the Group's
strategy to focus on product categories with scope for profitable
growth and ongoing commitment to reduce debt and improve
leverage.
- Ends-
For further information, please
contact:
International Greetings plc Tel: 01525 887310
Paul Fineman, Chief Executive
Anthony Lawrinson, Chief Financial
Officer
Cenkos Securities plc Tel: 0207 397 8900
Bobbie Hilliam
FTI Consulting Tel: 020 7831 3113
Jonathon Brill
Georgina Goodhew
This information is provided by RNS
The company news service from the London Stock Exchange
END
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