Wax Lyrical owner swoops for US firm in multimillion-pound deal
Listed pottery manufacturer Portmeirion has acquired a US based premium homewares business, which it says will add scale in a key market.
The Wax Lyrical and Royal Worcester producer has agreed to purchase Nambé, for a cash consideration of $12m (£9.5m).
Nambé has reported sales of $18m £14.3m) and adjusted EBITDA of $1.1m in 2018 and Portmeirion said the acquisition is expected to be earnings enhancing in the first full year of ownership.
Nambé designs, sources, markets, and retails Nambé branded products in homewares. Founded in 1951 and its range now includes cutlery, glassware, dinnerware, kitchenware and home décor. Nambé’s sales are largely concentrated in the US through wholesale channels, online and through eight retail stores across New Mexico and Arizona.
Portmeirion said: “The acquisition provides the company with additional scale in its key US market and strategically complements its existing US subsidiary while continuing to diversify the company into new homeware product categories.
“Portmeirion intends to leverage the Nambé product ranges through its existing US sales channels and global sales infrastructure. The company also expects to benefit from the expertise of Nambé’s contemporary design consultants across the Portmeirion brands and ranges. Further cost saving and production synergies are also expected.
“The company is also delighted that Nambé’s key management team will continue in their roles and believe they will further strengthen our existing US based team.”
The acquisition will be financed entirely through a new debt facility of £10m with Lloyds Banking Group repayable over a five-year period.
Lawrence Bryan, chief executive, said: “Having been working with Nambé for nearly a year on potential synergistic opportunities, we are delighted to acquire this historic US brand together with a strong management team. Nambé is synonymous with market leading design in homewares and we are hugely excited to take the brand on the next part of its journey. Portmeirion has a great track record of adding value through acquiring quality brands that can then be leveraged through our global sales infrastructure. We are looking forward to working with the Nambé team on growing the business.”
Dick Steele, non-executive chairman, said: “We are excited to have acquired Nambé, the acquisition is highly complementary to our existing business and provides further access to the key US market. We see the acquisition as an exciting milestone for Portmeirion. The board expects the acquisition to be earnings enhancing in the first full year of consolidation through top line growth along with sales and cost saving synergies.”