TIDMUPGS
UP Global Sourcing Holdings PLC
16 July 2021
16 July 2021
UP Global Sourcing Holdings plc
"Ultimate Products", "Group" or the "Company"
Completion of Acquisition of Salter Brands Limited
("Salter")
Ultimate Products, the owner, manager, designer and developer of
an extensive range of value -- focused consumer goods brands, is
pleased to announce that it has completed the acquisition of Salter
Brands Limited from FKA Brands Limited.
Salter is believed by the Directors to be the UK's oldest
housewares brand. It dates back to 1760, when Richard Salter, a
spring maker, began making the first spring scales in the UK from
the village of Bilston in the West Midlands. By 1825, his nephew
George had taken over the company, which became known as George
Salter & Co. George later established a manufacturing site in
the town of West Bromwich, and West Bromwich Albion Football Club
was formed from workers at the site.
Salter has long been the UK market leader for bathroom and
kitchen scales, but over time has expanded into other product
categories such as kitchenware and health devices. It serves
consumers through e-commerce and traditional retail channels in the
UK (including Amazon, eBay, Tesco, ASDA, Sainsbury, LIDL and Argos)
and with a growing international presence.
Included in the acquisition is Salter's range of high precision
kitchen scales, timers and thermometers that it has developed in
partnership with the renowned British chef Heston Blumenthal.
Commenting on the acquisition, Simon Showman, Chief Executive
Officer of Ultimate Products said:
"The Salter name is synonymous with quality and reliability, and
millions of households across the UK own a set of their scales or
one of their many outstanding kitchenware products. Few other
brands can boast of such a fantastic history and heritage, which
includes playing a key role in the creation of West Bromwich Albion
Football Club. We are delighted to be adding such an illustrious
brand to our portfolio, and are honoured to be taking it into the
next chapter of what has been a fascinating story since it began in
1760.
I would like to thank everyone involved in the transaction for
their hard work in delivering such a successful outcome, and our
long-term banking partner HSBC UK for their ongoing support."
Salter's product portfolio includes:
-- Bathroom scales: Salter sells mechanical and electronic
bathroom as well as analyser scales that can measure body mass
index.
-- Kitchen scales: Salter sells mechanical, electronic and
connected kitchen scales in a wide range of models and designs
-- Other kitchenware: Salter's wider kitchenware offering
includes electronic and manual salt and pepper mills, kitchen
thermometers, kitchen timers, handheld electronic milk frothers and
stainless-steel reusable straws.
-- Diagnostic and Healthcare: Salter has a small range of
diagnostic health devices including thermometers, blood pressure
monitors and oximeters.
Ultimate Products acquired Salter for an initial cash
consideration of GBP32.0 million on a debt free, cash free and
normalised working capital basis. A further deferred consideration
of GBP2.0 million is payable in cash in four tranches over 24
months from the completion of the acquisition. The Company carried
out an equity fundraising to raise approximately GBP15.0 million
(before expenses), which were used to fund part of the initial
consideration. In addition, the Company also entered into a new
additional GBP10.0 million conditional term loan agreement with
HSBC Bank plc ("HSBC UK") to part finance the initial
consideration. This facility, which runs to 1 October 2024 will sit
alongside the Group's existing bank facilities, including but not
limited to a revolving credit facility with HSBC UK.
Ultimate Products +44 (0) 161 627 1400
Simon Showman (Chief Executive
Officer)
Andrew Gossage (Managing Director)
Graham Screawn (Finance Director)
Shore Capital +44 (0) 20 7408 4090
Mark Percy
Edward Mansfield
Sarah Mather
Powerscourt +44 (0) 207 250 1446
Rob Greening
Sam Austrums
Notes to Editors
Ultimate Products is an owner, manager, designer and developer
of a series of well-known brands focused on the home, selling to
over 300 retailers across 37 countries. It has six product
categories: Audio; Heating and Cooling; Housewares; Laundry;
Luggage; and Small Domestic Appliances. Its brands include Beldray
(laundry, floor care, heating and cooling), Intempo (audio), Salter
(kitchenware), Constellation (luggage), and Progress (cookware and
bakeware).
The Group's products are sold to a broad cross-section of both
large national and international multi-channel retailers as well as
smaller national retail chains, incorporating discount retailers,
supermarkets, general retailers and online retailers. Its
best-selling products include frying pans, mugs and speakers,
selling approximately one million of each every year.
Founded in 1997, Ultimate Products is headquartered in Oldham,
Greater Manchester, where it has design, sales, marketing, buying,
quality assurance, support functions and warehouse facilities
across two sites. Manor Mill, the Group's head office, includes a
spectacular 20,000 sq ft showroom that showcases each of its
brands. In addition, the Group has an office and showroom in
Guangzhou, China and in Cologne, Germany.
Ultimate Products' graduate development scheme was launched in
2012 and in 2020 it welcomed its 300th graduate. In total, Ultimate
Products now employs over 300 staff.
Please note that Ultimate Products is not the owner of Russell
Hobbs. The company currently has licence agreements in place
granting it an exclusive licence to use the "Russell Hobbs"
trademark for cookware (NB this does not include Russell Hobbs
electrical appliances).
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