Business
Acquisition
Acquisition.
About this update from Mcbride Plc
[{"type":"text","content":"\n RNS Number : 0180S McBride PLC 02 September 2010 \n \n\n2 September 2010\n \nMcBride plc\n \nMcBride plc announces the acquisition of Dermacol a.s., a manufacturer of skincare products based in the Czech Republic.\n \nMcBride plc (\"McBride\"), Europe's leading provider of Private Label Household and Personal Care products, today announces the acquisition of a 70% interest in Dermacol a.s. (\"the Company\"), a privately owned, Czech-based manufacturer of skincare products for an expected consideration of around CZK240 million (£8 million) from its parent company Alphaduct a.s. (\"Alphaduct\"). McBride has also agreed to purchase the remaining 30% of the shares in late 2017 for a consideration based on the Company's operating profit in the 2017 financial year. \n \nAcquisition highlights\n \n· Provides McBride with an established private label product range in the largest sector of the European Personal Care market.\n \n· Creates the base for future growth in our skincare business.\n \n· Expands our presence in the growing Central European markets in a low-cost location.\n \nInformation on Dermacol a.s.\n \nDermacol a.s. is a manufacturer of skincare products, including face creams, skin cleansers, sun care products, body lotions, hand creams and foot creams. Its sales are evenly split between private label products for supermarkets and pharmacy chains and branded products for Alphaduct, which are sold in the Czech Republic and certain other markets. As part of the acquisition agreement, Alphaduct remains the owner of the Dermacol brand and trademarks and it will continue the distribution and marketing of its branded products. Alphaduct has entered into an agreement with the Company to purchase a minimum volume of product on a cost plus basis until 2018.\n \nThe Company has one factory, which is based near Brno in the Czech Republic and employs over 100 people. It is a modern, well invested factory with significant capacity for expansion. The factory meets ISO 9001 standards and GMP standards required by customers.\n \nDuring the year ended 31 December 2009, the Company reported profit before tax of CZK24 million (£0.8 million). At 31 December 2009, gross assets were...