William Sinclair said it expects the Growing Success Organics range to generate sales of £3 million in the year ended 30 September 2011 and believes that "margins can be improved as a result of the significant synergies available within manufacturing, sales, marketing and distribution, all of which fit well with the Company's existing core business".
William Sinclair directors said the acquisition would be "earnings enhancing during the current financial year and will provide strong growth potential for the future, as GSO will benefit from Sinclair's strong financial position and its wider reach in the horticulture market".
Before the acquisition, William Sinclair and GSO had already signed a distribution agreement to start to increase the number of outlets where GSO products can be sold by leveraging the Sinclair's retail sales network.
GSO supplies its range of gardening products to a customer base including Homebase and B&Q.
William Sinclair Holdings chief executive Bernard Burns said: "This acquisition marks the next step in the on-going expansion of William Sinclair. We continue with our strategy to become the leading company in the horticulture sector and will continue to consider further acquisition targets.
"The acquired business will integrate seamlessly within William Sinclair's operations. We look forward to securing the supply of these premium products to a wider customer base while ensuring levels of customer service remain the best in the industry."
Published: 24/11/2010
Source: http://hortweek.com
