Waterford Wedgwood is set to buy 86.5% of Ashling Corporation from Fitzwilton for $9.5 million. California-based Ashling specialises in designing, sourcing and marketing table and bed linens under the name WC Designs.
Ashling has a licence from Waterford Wedgwood to sell Waterford Linens since 1995 and Wedgwood Linens since early this year.
The consideration will be satisfied by the issue of over nine million new stock units in Waterford Wedgwood at a price of 1.20 euro each, being Waterford Wedgwood's average share price over the past six months.
A deferred consideration, subject to a maximum of $2.6 million, will also be payable next year, depending on the level of operating profit achieved by Ashling in 2001.
The 13.5% shareholding in Ashling not owned by Fitzwilton is owned by Patrick McCullough, President of Ashling. He will continue to hold these shares and will continue as CEO of the company.
Ashling achieved sales of $35.2 million last year and generated operating profits of $2.7 million. The acquisition is expected to be earnings enhancing this year.
Commenting on the acquisition, Waterford Wedgwood President Redmond O'Donoghue said that Ashling gives the company an even more meaningful position in the world of linens and textiles. 'This strategic step will allow a licensed business to become part of our own wholesale and retail business and gives us a significant centre of excellence in the whole range of home textiles'.
