Walker Greenbank buying Clarke & Clarke for £25m

Luxury interior furnishings company Walker Greenbank announced on Wednesday that it has entered into a conditional agreement with the shareholders of Globaltex 2015 - the parent company of Globaltex - to acquire its entire issued share capital.

The AIM-traded firm described Globaltex as a UK-based designer and worldwide distributor of quality interior fabrics and wallcoverings, trading as Clarke & Clarke.

It said the initial consideration will be £25m cash on a debt free, cash free basis payable at completion, with further performance related earn-out consideration payable by issue of new ordinary shares of 1p each, of up to 10 million shares or £17.5m in value.

The initial consideration will be funded in part by way of a placing of 8,947,369 new ordinary shares at 190p per share, which represents a 6.6% discount to the closing middle market price on 11 October, the board said, totalling £17m.

The remaining £8m of the cash element of the consideration is being met through drawdown under the company's existing bank facilities and cash resources, it added.

“We are delighted to acquire Clarke & Clarke and to welcome its two brands into our brand portfolio,” said Walker Greenbank chief executive John Sach.

“Clarke & Clarke will add significantly to our product offering, customer base and US presence and also create collaborative opportunities.

“Clarke & Clarke has a strong track record of growth and its acquisition will be materially enhancing for Walker Greenbank in its first full financial year.”