Churchill China PLC Acquisition of additional equity in Furlong Mills (1996O)
01 October 2019 - 1:00AM
UK Regulatory
TIDMCHH
RNS Number : 1996O
Churchill China PLC
30 September 2019
For immediate release 30 September 2019
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 (MAR).
CHURCHILL CHINA Plc
("Churchill", "Churchill China" or the "Company")
Acquisition of additional equity in Furlong Mills resulting in
full ownership
Churchill China plc (AIM: CHH), the manufacturer of innovative
performance ceramic products serving hospitality markets worldwide,
is pleased to announce that it has acquired a further 44.4 per cent
of the issued share capital of Furlong Mills Limited ('Furlong
Mills') from Portmeirion Group plc ('Portmeirion'), for a total
consideration of GBP3.3m ('the Acquisition'). The Acquisition is to
be funded from the Company's existing cash resources and will
result in Churchill having full ownership of Furlong Mills.
Prior to the Acquisition, Churchill owned a total of 55.6 per
cent of the issued share capital of Furlong Mills, reflecting
shares held for many years as well as the shares purchased from
Dudson Holdings Limited in February 2019.
Furlong Mills is a ceramic materials manufacturer based in Stoke
on Trent, providing processed clay body and glazes to Churchill
China and to other manufacturers. Furlong Mills' products are a key
part of Churchill's supply chain.
Churchill's strategy continues to be to offer innovative, high
performance and technically differentiated ceramic products to
hospitality markets worldwide. We expect that full ownership of
Furlong Mills, with its substantial intellectual property, will
facilitate further material, process and product innovation in the
medium and long term and will contribute to the continued
development of the Company.
Portmeirion will continue to source its raw materials from
Furlong Mills under a long term supply agreement.
For the 12 months to 31 December 2018, Furlong Mills reported
revenue of GBP9.6m, which included GBP3.2m of sales to Churchill
China and statutory profit before tax of GBP0.5m. Adjusted EBITDA
for the same period was GBP1.1m. Net assets at 31 December 2018
were GBP4.8m.
For further information, please contact:
Churchill China plc Tel: 01782 577566
David O'Connor / David Taylor
Buchanan Tel: 020 7466 5000
Mark Court / Sophie Wills
Investec Bank plc (Nominated Adviser Tel 020 7597 5970
and Broker)
David Flin / David Anderson / Alex
Wright
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END
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