Pittards exchange contracts for ETSC
10 December 2009Yeovil-based leather manufacturer, Pittards plc, producer of technically advanced leather and leather goods for sale to retailers, manufacturers and distributors, have announced on December 10, that they have exchanged conditional contracts with the government of Ethiopia for the acquisition of the Ethiopia Tannery Share Company (ETSC).
Pittards is to fund the acquisition through a share placement of new ordinary shares many of which will be taken up by the existing directors and owners of the business. The contract is conditional on the approval of Pittards’ existing shareholders at a general meeting to be held on December 22.
Pittards have a long history of trade with Ethiopia and the purchase of Ethiopian sheepskins for its glove leather production . ETSC is Ethiopia’s largest tannery and has been operated under Pittards’ supervision since August 2005 in return for a monthly management fee and royalty payments. In that period, production quality, efficiencies and methods have been significantly enhanced. ETSC is operating profitably and Pittards intends to transfer more volume production from their UK site in Yeovil to ETSC, freeing up additional resource in Yeovil for more technologically advanced, higher value added leathers-for example for the luxury leathergoods sector.
Stephen Boyd, chairman of Pittards commented: ‘We are delighted to have concluded this deal to acquire ETSC, a company we have known for many years and with which we have had a close working relationship since 2005. This acquisition has the potential to be a great deal for Pittards and Ethiopia and we look to the future with confidence.’
