RNS Number:5282K
Kleeneze PLC
04 April 2005
For Immediate Release 4 April 2005
Kleeneze plc
Acquisition of Kitbag Sports Limited
Kleeneze plc ("Kleeneze" or the "Group"), the leading home shopping specialist,
announces the acquisition of Kitbag Sports Limited ("Kitbag"), a market leading
internet sports retailer on www.kitbag.com.
Kitbag sells a wide range of branded and own label sports and fitness
merchandise through www.kitbag.com. In addition, they have long term contracts
with a number of leading football clubs for the provision of their online and
mail order sales in the UK and certain other territories. These contracts
include Manchester United, Chelsea and Barcelona.
The total UK sports goods market is worth over #4.5 billion and has grown over
25% since 1999 (Source: Mintel). Of this, 75% was accounted for by clothing and
footwear, which is Kitbag's key market place. The football replica kit market,
in which Kitbag is a major player, has been a key driver of this growth and this
market is estimated to be worth more than #200 million per annum.
As set out in our acquisition of I Want One of Those.com on 26 October, 2004 we
are developing a range of products that can be sold across our distribution
channels of network marketing, catalogues, the internet and, most recently,
television shopping, through eeZee tv (Sky channel 659). Kitbag's products will
sell well into our combined audience.
Kitbag brings a proven e-commerce and back office software solution, as well as
extensive website building and IT development skills, which will further enhance
the skills base at I Want One of Those.com. Kitbag's experienced management team
will be staying with the Group.
The consideration is #6.0 million paid in cash and the issue of 1,309,898
Ordinary shares of 5p each in Kleeneze plc, over 75% of which will be retained
by of the certain vendors for at least 12 months. An amount of #0.3 million in
cash has been held as contingent deferred consideration.
For the financial year ended 31 July 2004, Kitbag reported turnover of #8.0
million generating gross profits of #3.4 million. Net liabilities on
acquisition are estimated to be #0.6 million.
Application will be made for the 1,309,898 shares to be admitted to the Official
List of the UK Listing Authority and to the London Stock Exchange for admission
to trading.
William Rollason, Chief Executive of Kleeneze plc, commented:
"I am very excited about the acquisition of Kitbag as it is a further step in
our development as a multi-channel retailer and adds another strong product
range to our existing businesses. We have acquired another market leading
internet business, which will strengthen our growing internet division.
Kitbag's highly regarded management team is staying with us and I welcome
Richard Styles and his team to the Group."
Richard Styles, Chairman of Kitbag, said:
"We are delighted to be joining Kleeneze as this will enable us to fast track
the growth of our business, both organically and through the additional audience
within the enlarged group. We all look forward to working with William and his
team."
Contacts:
Kleeneze plc 01793 606 000
William Rollason - Chief Executive
Chris Hulland - Finance Director
Buchanan Communications 020 7466 5000
Richard Oldworth
Suzanne Brocks
This information is provided by RNS
The company news service from the London Stock Exchange
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