Portmeirion buying US homewares firm Nambe in $12m deal
By Josh White
Date: Monday 15 Jul 2019
(Sharecast News) - Homewares manufacturer and distributor Portmeirion Group announced the acquisition of US based premium homewares business Nambé on Monday, for a cash consideration of $12m.
The AIM-traded firm described Nambé as a premium, branded US homewares business, with reported sales of $18.0m and adjusted EBITDA of $1.1m in 2018.
It said the acquisition would provide additional scale in the key United States market, with the board expecting to achieve both sales and cost synergies.
The acquisition was expected to be earnings enhancing in the first full year of ownership.
Portmeirion said the acquisition would be financed entirely through a new debt facility of £10m with Lloyds Banking Group, repayable over a five-year period.
Additionally, the company said it had agreed terms to extend its existing overdraft by £3m.
"Having been working with Nambé for nearly a year on potential synergistic opportunities, we are delighted to acquire this historic US brand together with a strong management team," said Portmeirion chief executive officer Lawrence Bryan.
"Nambé is synonymous with market leading design in homewares and we are hugely excited to take the brand on the next part of its journey."
Bryan said Portmeirion had a "great" track record of adding value through acquiring quality brands, that could then be leveraged through Portmeirion's global sales infrastructure.
"We are looking forward to working with the Nambé team on growing the business."
Dick Steele, non-executive chairman, added that the board was "excited" to have acquired Nambé, describing the acquisition as "highly complementary" to the firm's existing business, providing further access to the "key" US market.
"We see the acquisition as an exciting milestone for Portmeirion," Steele explained.
"The board expects the acquisition to be earnings enhancing in the first full year of consolidation through top line growth along with sales and cost saving synergies."
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