LONDON: Churchill China plc, the manufacturer of innovative performance ceramic products serving hospitality markets worldwide, has acquired a further 44.4 percent of the issued share capital of Furlong Mills Limited from Portmeirion Group for a total consideration of £3.3 million.
The acquisition is to be funded from the cCompany’s existing cash resources and will result in Churchill having full ownership of Furlong Mills.
Prior to the Acquisition, Churchill owned a total of 55.6 per cent of the issued share capital of Furlong Mills, reflecting shares held for many years as well as the shares purchased from Dudson Holdings Limited in February 2019.
Furlong Mills is a ceramic materials manufacturer based in Stoke on Trent, providing processed clay body and glazes to Churchill China and to other manufacturers. Furlong Mills’ products are a key part of Churchill’s supply chain.
Churchill’s strategy continues to be to offer innovative, high performance and technically differentiated ceramic products to hospitality markets worldwide.
Portmeirion will continue to source its raw materials from Furlong Mills under a long term supply agreement.
For the 12 months to 31 December 2018, Furlong Mills reported revenue of £9.6 million, which included £3.2 million of sales to Churchill China and statutory profit before tax of £0.5 million. Adjusted EBITDA for the same period was £1.1 million. Net assets at 31 December 2018 were £4.8 million.