US firm buys Kleeneze from Findel

HOME shopping group Findel has called time on its loss-making home shopping business Kleeneze with the sale to a US firm.

The new owner of Accrington-based Kleeneze is Trillium Pond, which is a subsidiary of CVSL Inc, a New York-listed business specialising in direct to consumer sales. It is paying around £3.6m for the business which had revenues of £45m in the year to March 2014.

For the half-year ended 26 September 2014 Kleeneze reported a loss before tax and exceptional items of £400,000 (2013: profit of £600,000). For the full year ended 28 March 2014 Kleeneze reported a profit before tax and exceptionals £1.3m and a loss before tax after exceptional items of £2.4m.

Kleeneze was founded in Bristol in 1923 and has been a popular way for mothers to supplement their income, given its flexibilty. It has been owned since 2007 by Findel.

The proceeds of the sale will be used to further reduce the group’s bank debt. In addition, as part of an arms-length agreement, Findel’s Express Gifts will continue to provide Kleeneze with distribution and other support services on an exclusive basis for a minimum period of 18 months.

A statement said: “Following an approach from CVSL, the board assessed the opportunities and prospects for Kleeneze and concluded that it was in the best interests of shareholders and members of the Kleeneze network to proceed with this transaction.

“This sale of Kleeneze will streamline the group and enable it to focus its resources on growing its core businesses. Further, the board believes that Kleeneze will benefit from the extensive expertise and support that CVSL would bring.”

Commenting on the transaction, Roger Siddle, chief executive  of Findel, said: “CVSL represents a natural home for Kleeneze. We believe that this transaction is in the best interests of both Findel and Kleeneze, allowing Kleeneze to benefit from the extensive expertise and support of CVSL whilst allowing Findel to focus its resources on growing its core businesses.”

John Rochon Jr., CVSL’s vice chairman, added: “Kleeneze has an extensive product line, a nearly century-long heritage, a well-known brand and a robust presence throughout the UK.

“We believe Kleeneze will be an outstanding addition to our CVSL family of companies. Kleeneze gives CVSL a very significant presence in the UK and represents an important step forward in CVSL’s international expansion.”