Ultimate picks up luggage brand
ULTIMATE Products has added a further £10m to its turnover after picking-up a long-standing luggage business.
Oldham-based Ultimate Products, which sources and designs homewares, electrical goods and other ranges in the Far East for major retailers. has bought the luggage and small leather goods divisions of Japinda Group.
Japinda, based close to Ultimate in Oldham, was founded in 1952 and for more than 40 years has manufactured luggage and associated travel goods under the Constellation Luggage brand.
It supplies the likes of Argos, Dunnes, Sainsbury’s, TJ Hughes and Mackays and employs around 30 people. The terms of the acquisition were not disclosed.
The deal is Ultimate’s third in the last 12 months, and founder and chief executive Simon Showman is looking for more.
He said: “We’re trading really well at the moment and that gives us the confidence to do deals. Luggage is a new area for us and we have got a nice strong business.
“Importantly it also gives us spring/summer invoicing which will give us some balance over the year.”
He said the plan was to introduce some fresh designs and new products into the business, such as a lightweight suitcase.
“While we continue to grow organically, strategic acquisitions like this one will play an important role in our expansion into the future – with the backing of our main investor LDC and our bank HSBC, we are currently looking at a number of wider opportunities with key players that have strong product offerings and deep customer relationships,” he added.
Ultimate was founded in 1997 by Mr Showman and his business partner Barry Franks. In that time turnover has grown from £1.8m to £70m.
He said the collapse of Ethel Austin and ceasing to supply Poundstretcher, because of a problem with credit insurance, had cost Ultimate £8m in sales, but this figure had been replaced by more orders from the major supermarkets and Marks & Spencer.
Partner Martin Caller and solicitor Nicola Brookes of Manchester law firm Pannone advised Japinda Group on the disposal.
