RNS Number:4840E
Kleeneze PLC
26 October 2004
For Immediate Release 26 October 2004
Kleeneze plc
Acquisition of I Want One of Those.com Limited
Kleeneze plc ("Kleeneze" or the "Group"), the home shopping specialist,
announces the purchase of I Want One of Those.com Limited ("IWOOT"), the
established market leading internet retailer offering gifts, gadgets and
lifestyle accessories on its award winning website www.iwantoneofthose.com.
IWOOT is the number one most visited site in its sector (source Hitwise) with
over 400 products on offer at any one time at prices which start at #2.99
operating its own sophisticated technology platform which is fully integrated
with its customer service systems. IWOOT's experienced management team will be
staying with the Group.
The acquisition will enhance both Kleeneze's network marketing business and
eezee TV, the Group's newly formed TV shopping joint venture, through IWOOT's
exciting product range and internet retailing platform. IWOOT also brings proven
website building and development skills, which can be expanded across the Group.
IWOOT will also provide an important link in the development of products within
the Group. Products will be initially developed and launched on
www.iwantoneofthose.com, migrated to eezee TV and, if successful, sold through
Kleeneze Europe's catalogues following which they will either be returned to
eezee TV or www.iwantoneofthose.com. This virtuous circle should improve the
efficiency of Kleeneze Europe's catalogues and enhance the earning potential of
its distributors.
The base consideration of #6.0 million in cash will be paid in three instalments
of #2.25 million, #1.875 million and #1.875 million in June 2005, June 2006 and
June 2007 respectively. There will also be deferred consideration of up to
#4.65 million payable in three equal cash instalments of #1.55 million based on
the achievement of certain profit related targets for the years ending 30th
April 2006, 2007 and 2008. The total consideration could, therefore, be up to
#10.65 million in cash.
For the financial year ended 31st March 2004 IWOOT reported turnover of #7
million and EBITDA of #0.1 million. Pre tax losses were #0.3 million after
non-recurring charges of #0.2 million. Net liabilities on acquisition are
estimated at #0.6 million.
William Rollason, Chief Executive of Kleeneze plc, commented:
"I am very pleased to announce the acquisition of IWOOT as it marks another
important step in the Group's development as a multi-channel retailer building
on eezee TV, our shopping channel J.V. which we announced last month. We now
have another effective route through which we can develop new products in a cost
effective and efficient manner before we put them in our catalogues. IWOOT is
the market leader in its field with a highly respected management team who are
staying with us and have an excellent reputation for bringing innovative
products to market and we welcome Dave Booth and his team to the Group."
Dave Booth, Managing Director of IWOOT, said:
"We are very excited about joining Kleeneze. Whilst we operate in two very
different markets, there are a lot of complimentary synergies. For IWOOT, we
will be able to consolidate our position as the UK's leading gifts and gadgets
online retailer and develop new channels to market for our growing range. For
Kleeneze we bring internet expertise and a platform to develop a broader range
of new innovative products."
Contacts:
Kleeneze plc 01793 606 000
W P Rollason - Chief Executive
C J S 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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