RNS Number:4483K
Zenith Hygiene Group plc
1 April 2005
Acquisition of the business and certain assets of MP Chemical Products Limited
Zenith Hygiene Group plc ("Zenith" or "the Group"), the manufacturer and
supplier of cleaning and non-food ancillary products to the food service and
hospitality markets, announces the acquisition of the business and certain
assets of MP Chemical Products Limited ("the MP Business"). The consideration
is #120,000 in cash plus a further cash payment for the agreed value of stock at
completion ("the Stock Value"), expected to be approximately #15,000. Other
than stock, no assets, and no liabilities, will be assumed by Zenith. The
consideration is payable as follows:
* #60,000 is payable at completion;
* #30,000 is payable one month following completion; and
* #30,000 plus the Stock Value is payable three months after completion.
The MP Business is based in Holywood, Northern Ireland and is a supplier of
cleaning, hygiene and non-food ancillary products. Key customers include Subway
sandwich stores and Mount Charles one of the leading contract caterers in
Northern Ireland.
The MP Business had sales of approximately #0.4 million for the 16 month period
to 31 March 2004. The latest unaudited management accounts show the MP Business
had sales of approximately #0.4 million for the 11 months to 28 February 2005.
The key employees within the MP Business have agreed new contracts of employment
with Zenith.
Zenith acquired SB Chemicals Limited ("SB Chemicals"), based in Lisburn,
Northern Ireland in October 2004. The rationale for that acquisition was
predominantly to provide manufacturing capability for the Zenith Group, but also
to provide a platform for growing sales in Ireland. The MP Business will be
subsumed within Zenith's existing sales and marketing operations at Lisburn and
will approximately double Zenith's sales in Ireland.
Commenting on the acquisition, Ringo Francis, Chairman & Chief Executive, said:
"In line with our strategy, we are delighted to be adding MP to the Zenith Group
and adding to our sales in Ireland, an area we have been targeting since the
acquisition of SB Chemicals last year."
For further information, please contact:
Zenith Hygiene Group plc 01707 270 260
Ringo Francis, Chairman and Chief Executive
Richard Colwell, Finance Director
Beattie Financial 020 7398 3300
Tim Blythe
Tracy Lloyd-Watts
This information is provided by RNS
The company news service from the London Stock Exchange
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