Waterford Wedgwood plc has announced it has reached an agreement to acquire 86.5 per cent of Ashling Corporation from Fitzwilton Ltd for a consideration of US$9.5 million.
The consideration will be satisfied by the issue of 9,331,733 new stock units in Waterford Wedgwoodat a price of euro 1.20 each.
Ashling, which is based in Anaheim, California, specialises in designing, sourcing and marketing table and bed linens under the trading name 'W-C Designs'. It has had a license from Waterford Wedgwood to sell Waterford Linens since 1995 and Wedgwood Linens since early 2001.
Ashling achieved sales of US $35.2 million for the year ended December 31st 2000 and generated operating profits of US$2.7 million. Sales of Waterford Linens were US$12 million in 2000.
Speaking at the announcement of the deal Mr Redmond O’ Donoghue, presidentof Wedgewood said that the acquisitionoffered Wedgewood an opportunity to move into markets it has, to date, been unable to enter.
"It is only very strong brands that can move beyond their core categories. Our brands have achieved this successfully in Japan and America, said Mr Redmond.
"This acquisition allows us to build aggressively on these exciting foundations. Ashling gives us an even more meaningful position in the world of linens and textiles and we will extend this category into new markets."