MPH 17p +4p
the market likes the deal
My chart last week certainly was signaling good news


MARCHPOLE COMPLETES ACQUISITION OF MODA AMERICA LLC
Marchpole Holdings plc, which designs, produces and sells high quality clothing
and accessories for six world class brands (Yves Saint Laurent, Boateng,
Jean-Charles de Castelbajac ("JCC") and Jean-Charles de Castelbajac / Rossignol,
Emanuel Ungaro and Ungaro), today announces the successful completion of its
acquisition of the whole of the issued share capital of Moda America LLC.
Moda America is the US licensee for Emanuel Ungaro and the acquisition brings
five key benefits :
- Based on turnover of $20m in the year to 31st December 2005, primarily
from major blue chip U.S. retail customers such as Federated, Macy's, Robinson
May and Marshall Fields, the Directors anticipate that sales and margins will
increase as Moda benefits from Marchpole's design, sourcing and production base.
- Marchpole will be launching the diffusion Ungaro homme collection in
the UK from Spring/Summer 2007. This collection will be priced at similar
levels to the current YSL ranges which the Directors expect to have
significant mass market appeal across Marchpole's existing customer base.
- The presence of Marchpole in North America and the new distribution
relationships accessed through this acquisition will facilitate the launch of
the Jean Charles de Castelbajac brands in the US from Autumn/Winter 2006.
- Marchpole's relationship with Emanuel Ungaro has been strengthened
further, illustrated by the granting of womenswear distribution rights for the
US.
- The Emanuel Ungaro mainline collection, already established by
Marchpole in Europe and Asia, will now be launched into the US, Canada and
South America.
Total consideration for the acquisition will be $5.5m in cash, to be satisfied
from the Company's existing resources, of which $1.0m was paid on completion and
the balance of $4.5m payable on 31st July 2006.......