IG Design Group PLC Acquisition of Lang Companies Inc (7451D)
11 Julho 2016 - 3:00AM
UK Regulatory
TIDMIGR
RNS Number : 7451D
IG Design Group PLC
11 July 2016
11 July 2016
IG Design Group PLC (the "Company" or "Design Group")
Acquisition of Lang Companies Inc ("Lang")
IG Design Group plc (formerly International Greetings plc), one
of the world's leading designers, innovators and manufacturers, of
gift packaging and greetings, social expression giftware,
stationery and creative play products, is pleased to announce today
the acquisition, of 100% of the share capital of Lang Companies
Inc., the design-led supplier of high-quality branded consumer
indoor and outdoor home décor and lifestyle products, based in the
USA.
The acquisition, made through Design Group's US subsidiary, was
satisfied by a net cash consideration of $3.6m. The consideration
represents a multiple of estimated EBITDA to 31 March 2016 ($1.25m)
of just over four times less a working capital adjustment of
$1.7m.
Operating under three brands: Lang, Wells St. and Turner
Licensing, Lang's products include design-led giftware and gift
calendars, with licenses such as NBA and NFL. The business has
resilient revenue streams with a complementary range of customer
channels. It has live trading relationships with many US based
national chains and in excess of 3,000 specialist gift stores.
Additionally, Lang has established a direct to consumer sales
channel through its own website and catalogues with over 150,000
direct customers.
In the year to 31 May 2015, Lang's audited accounts reported
turnover of $34.4m and loss before tax of $2m. Net liabilities were
reported as $14.9m. However, Design Group will not acquire the
historical debt structure and the business will be delivered at
closing with net working capital of $8.3m. The EBITDA estimate
stated above of $1.25m is, in the Directors opinion, a more
meaningful estimate of the underlying profitability of Lang to 31
March 2016.
The acquisition is underpinned by some modest management
synergies arising immediately, but more meaningful sourcing
synergies arising from 17/18 onwards due to the seasonal nature of
the business. Additional cross selling synergies may also be
available.
The total transaction and restructuring costs are estimated to
be GBP1m which will be treated as exceptional costs.
Commenting on the acquisition, Paul Fineman, Chief Executive,
said:
"Lang's slogan is "We Start with Great Art" and this fits
exactly with Design Group's own natural focus. In terms of product,
markets and culture, Lang is highly complementary to what we
already do, offering scale, synergies and additional channels to
market for Design Group Americas, our fastest growing business. I
am delighted to welcome Lang into the Design Group fold."
- Ends -
For further information, please contact:
IG Design Group plc Tel: 0152 588 7310
Paul Fineman, Chief Executive
Anthony Lawrinson, Chief Financial Officer
Cenkos Securities plc Tel: 0207 397 8900
Bobbie Hilliam
Alex Aylen
Redleaf Communications Tel: 0207 382 4730
Rebecca Sanders-Hewett designgroup@redleafpr.com
Sarah Fabietti-Dallison
Susie Hudson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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July 11, 2016 02:00 ET (06:00 GMT)
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