UK company Royal Doulton has announced that it has agreed to buy Caithness Glass Ltd., also of the UK, which designs hand-made coloured glass giftware, for a maximum UK 5.47 million. Royal Doulton sai…
UK company Royal Doulton has announced that it has agreed to buy Caithness Glass Ltd., also of the UK, which designs hand-made coloured glass giftware, for a maximum UK 5.47 million. Royal Doulton said it already had irrevocable undertakings and commitments in respect of 85% of the company and Caithness was recommending the offer to shareholders. Royal Doulton, whose brands include Royal Crown Derby, Minton, Royal Albert and Royal Doulton itself, said the deal should be earnings enhancing for the first full year after acquisition. Caithness is best known for its individually designed glass paperweights. The glass designer had pre-tax profits of UK 0.56 million in 1995 and consolidated net assets of UK 2.6 million. On completion of the deal, expected on 28 October, Caithness is expected to have net indebtedness of around UK 1.2 million. Royal Doulton“s glassware products accounted for just under UK 20 million of its total sales of UK 242.8 million in the year ending 31 December, 1995. “Caithness can achieve further expansion through Royal Doulton“s international and retail distribution networks and Royal Doulton“s financial resources will enable it to expand its manufacturing and visitor facilities to achieve further growth,” Stuart Lyons, chief executive of Royal Doulton, said. Alistair Mair, who will continue in his role as chairman and managing director of Caithness after the deal, said the new ownership would bring “the opportunity for more rapid growth than we could achieve on our own”