LONDON (ShareCast) - (Sharecast News) - Supreme announced the acquisition of the trade and intellectual property of the 1001 carpet care brand from the WD-40 Company for £1.65m on Monday, including £0.35m of deferred consideration, as it looked to expand its portfolio of household consumer goods.
The AIM-traded firm said the deal also allowed for the purchase of inventory at book value, and included up to £3m in contingent consideration tied to future sales growth.

It said the heritage British brand, dating back to the 1940s, was best known for its Carpet Fresh range andhad a strong retail presence with customers including Tesco, Asda, Morrisons, Home Bargains and B&M Bargains.

For the year ended 31 August, 1001 was expected to report revenue of around £4.5m, down from a peak of £8m in prior years.

The business would continue to be manufactured in the UK, with a transitional services agreement in place to ensure a smooth handover.

Supreme said the acquisition was expected to be immediately earnings enhancing and provide access to new retail customers, including Aldi, while enabling longer-term growth opportunities in the household cleaning category.

The company said it planned to use its vertically integrated platform and distribution network, spanning 40,000 outlets, to accelerate 1001's development at minimal additional cost.

"1001 is a heritage British brand with decades of trust and consumer recognition and we are thrilled to welcome it into the Supreme family," said chief executive Sandy Chadha.

"This acquisition highlights our ability to identify and reinvigorate brands with strong equity while leveraging our shared back-office capabilities.

"We see substantial potential to expand the 1001 range, invest in its growth, and build another successful vertical alongside our existing portfolio."

At 0947 BST, shares in Supreme were up 2.78% at 185p.

Reporting by Josh White for Sharecast.com.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE