Glisten Plc acquires Lyme Regis Fine Foods Limited
Established in 1986, Lyme Regis is a leading manufacturer and supplier of organic cereal and fruit bars and organic fruited snacks both to major retailers such as Sainsbury, Tesco and Waitrose, as well as to a broad range of UK health-food outlets.
14/12/05 Glisten Plc, ("Glisten" or "the Group"), the fast-growing confectionery and snack foods group, announces its acquisition of the entire issued share capital of Lyme Regis Fine Foods Limited ('Lyme Regis').
Lyme Regis operates from two sites in Liphook, Hampshire, employing over 50 people who, in the year to 31 December 2004, generated normalised EBIT of Pounds Sterling 0.5m on sales of Pounds Sterling 3.6m. Established in 1986, Lyme Regis is a leading manufacturer and supplier of organic cereal and fruit bars and organic fruited snacks both to major retailers such as Sainsbury, Tesco and Waitrose, as well as to a broad range of UK health-food outlets.
Approximately 60 percent of its sales are branded 'Lyme Regis' - including a strong organic, no added sugar range for children. It has also just launched, under the 'Bright' brand name, a new range of Low GI bars aimed at the premium 'lunchbox' market - primarily for adults. The balance of Lyme Regis sales are via a small number of own label contracts, including the supply of a range of energy bars to European gyms and health clubs.
Lyme Regis has been acquired for an undisclosed sum which is being satisfied by a combination of shares and cash, the latter being funded from Glisten's bank facilities with Barclays, which have recently been extended. The Directors estimate that the enlarged Group will have gearing of approximately 70% following this acquisition. The balance of the initial consideration is being satisfied by the allotment to the Lyme Regis vendor of 155,063 new ordinary shares in Glisten which rank parri passu with all the other Glisten ordinary shares now in issue. Application has been made for the new ordinary shares to be admitted to AIM. Admission is expected to take place on 19 December 2005.
The founder of Lyme Regis will be staying with the business to continue its development following the acquisition and will also contribute to building the rest of Glisten's confectionery and snacking range in the organic and 'well-being' segments.
In addition, the Company is also pleased to announce the establishment of an international office, in Rotterdam, to further develop its export business across all product sectors. The office will be headed up by Albert Cuypers who joins Glisten as Commercial Director, International Division. Albert was previously Head of Sales at a leading European cereal bar manufacturer and brings considerable experience of blue-chip export business development into the Group for the first time. As such, he will focus initially on growing sales of Glisten's existing cereal and health bar range.
Although Glisten already has a broad international presence, with 13.6 per cent. of turnover (year to 30 June 2005) going to more than 20 countries worldwide, the Directors believe that this is an area with even stronger growth potential than Glisten has been able to exploit thus far.
