WTL Waterlogic

RNS Number:4076K
Waterline Group plc
13 October 2006


                                                                13 OCTOBER 2006


                              WATERLINE GROUP PLC
                                   (AIM: WTL)

                ACQUISITION OF BRIAN DONALDSON DISTIBUTION LTD

The Board of Waterline Group PLC ('Waterline' or the 'Group'), one of the
largest suppliers to the fitted kitchen industry in the UK, is pleased to
announce today the acquisition of Brian Donaldson Distribution Ltd ('BDD'), a
leading kitchen distributor in Scotland, for up to #500,000 in cash.

As part of the Group's ongoing acquisition strategy, this latest addition
further cements Waterline's position in Scotland, while protecting its UK-wide
distribution network. BDD is the oldest distributor of Franke sinks and taps in
Scotland and by becoming part of the Waterline Group distribution network its
addition strengthens Waterline's position in the Scottish market place.

HIGHLIGHTS

   * Waterline to acquire BDD for an initial payment of #220,000, with a
    further payment of up to #280,000 depending on future profits;

   * Acquisition adds bulk to Waterline's operations in Scotland and provides
    a solid barrier to entry; and

   * Following the acquisition, Waterline will be well placed to increase
    sales of Franke-branded goods, while it continues to strengthen its growing
    product portfolio.

Glasgow-based BDD made profits of #30,000 on sales of #1.6m last year, with
turnover expected to grow to #2.0m this year. Waterline has agreed to pay
#280,000 on top of its initial payment, based on BDD achieving profits of
#100,000 during the 12 months to 31 March 2007. The acquisition includes
#430,000 of tax losses at BDD.

Michael Lawrence, Chief Executive of Waterline, commented today: "We are 
delighted to strengthen our position in Scotland. This latest addition 
re-affirms our ongoing acquisition strategy and provides further substance to 
our operations. Trading at the Group remains in line with expectations and we 
look forward to updating the market in due course."

Enquiries:
Waterline Group plc                                                0190 821 9759
Michael Lawrence, Chief Executive
www.waterline.co.uk

Daniel Stewart & Co                                                020 7776 6550
Ruari McGirr
www.danielstewart.co.uk

Bishopsgate Communications Ltd                                     020 7430 1600
Dominic Barretto
Nick Rome
www.bishopsgatecommunications.com

Notes to Editors:

Waterline
Waterline provides a one-stop shop for top high street kitchen brands, supplying
retailers and builders merchants. Additional services that Waterline provides to 
its customers - such as training, product advice, stock management and logistics
 - sets the Group apart from the more conventional distributors in the market.

Franke
Franke is the world(1)s leading sink manufacturer and renowned for a commitment
to quality and an unmistakable flair for design, using the finest materials and
state-of-the-art production technology.

.






                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
ACQMTBRTMMBBBRF

Waterlogic (LSE:WTL)
Historical Stock Chart
Von Jun 2024 bis Jul 2024

Waterlogic (LSE:WTL)
Historical Stock Chart
Von Jul 2023 bis Jul 2024