Acquisition
29 August 2000 - 6:02PM
UK Regulatory
RNS Number:0471Q
Goldshield Group PLC
29 August 2000
Second US Acquisition For Goldshield plc
Group Acquires Women's Health Product Range Plus
Distributor Database
Goldshield Group plc ("Goldshield") announces the
acquisition of Achievers Unlimited Inc. based in Florida
USA ("Achievers Unlimited") for a deferred, performance
related maximum sum of US$9.3 million. Achievers
Unlimited is an established business selling nutritional
products for slimming and women's health across the
United States.
The acquisition, being carried out through Goldshield's
US subsidiary, Goldshield USA, Inc., involves a small
initial cash payment of up to US$ 800,000 for the
inventory held on the 1 September 2000. Goldshield has
agreed to purchase the remaining assets of Achievers
Unlimited, including its distributor database of over
30,000 names, for a maximum sum of $9.3 million, payable
27 months following completion. The earn out is
performance related and based on a multiple of 7.2 times
earnings before interest, tax and amortisation and will
be based upon average annualised earnings over a 20 month
period beginning 1st January 2001 and ending 30 August
2002. As with the acquisition of Golden Pride, Inc,
announced in July, Achievers Unlimited is based in
Florida. The close proximity of the two companies is
expected to enable cost efficiencies in the near term.
The unaudited results for Achievers Unlimited for the
first six months of this year show sales of approximately
US$4 million and an unaudited profit before tax and non-
recurring items of $150,000. Achievers Unlimited recorded
a net profit of $639,000 for the year ended 31 December
1999 and the value of the Company's net assets on 31
December 1999 was $892,000.
The results of Achievers have declined over recent years,
however, the Directors of Goldshield believe there is
potential to stem this decline and believe the business
has potential for further growth.
Goldshield has agreed to retain all the management of
Achievers Unlimited and has granted them 150,000 share
options based on the price at close of market on 25th
August 2000.
Ajit Patel, Chairman of Goldshield Group plc, said:
"By the end of this year we should start to see some
significant efficiencies setting in through the
close proximity and related business areas of these
two acquisitions. In the space of only six weeks
we have acquired a widely spread direct sales
network through which to sell both established
Goldshield brands and those recently acquired from
Achievers Unlimited. Over the next year our main
focus will be on getting these two companies turned
around and in establishing complimentary US sales
channels for our products."
For Further Information Please Contact:
Goldshield Group plc Tel: +44 (0) 20 8649 8500
Ajit Patel, Chairman
Rakesh Patel, Finance Director
Buchanan Communications Tel: +44 (0) 20 7466 5000
Nicola How
Notes to editors:
Goldshield Group plc: a profitable, British, marketing-
led, emerging pharmaceutical company based in Croydon,
Surrey, was founded in 1990, to sell healthcare and
pharmaceutical products internationally. In June 1998
Goldshield floated on the London Stock Exchange and
currently has a market capitalisation of around #300
million.
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