Churchill China PLC Acquisition of additional equity in Furlong Mills (1996O)

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: [phone] 
 David O'Connor / David Taylor 
 
 Buchanan                               Tel: [phone] 
 Mark Court / Sophie Wills 
 
 Investec Bank plc (Nominated Adviser    Tel [phone] 
  and Broker) 
 David Flin / David Anderson / Alex 
  Wright 
 

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September 30, 2019 11:00 ET (15:00 GMT)