Kleeneze sold to US firm
The owners of Accrington-based home shopping firm Kleeneze have agreed a £3.6m sale to Trillium Pond, part of US-based CVSL Inc.Kleeneze has been owned by Findel, which also owns Express Gifts, since 2007 and registered revenues of £45m to March 2014.
However, profits slipped to six-month losses, registering a £400,000 pre-tax deficit to the end of September, and Findel hopes the proceeds of the sale will go towards reducing its own debt.As part of the deal, Express Gifts will continue to provide Kleeneze with distribution and other support services on an exclusive basis for a minimum period of 18 months.
A statement read: "Following an approach from CVSL, the board assessed the opportunities and prospects for Kleeneze and concluded that it was in the best interests of shareholders and members of the Kleeneze network to proceed with this transaction."This sale of Kleeneze will streamline the group and enable it to focus its resources on growing its core businesses. Further, the board believes that Kleeneze will benefit from the extensive expertise and support that CVSL would bring."
Roger Siddle, chief executive of Findel, said: "CVSL represents a natural home for Kleeneze. We believe that this transaction is in the best interests of both Findel and Kleeneze, allowing Kleeneze to benefit from the extensive expertise and support of CVSL whilst allowing Findel to focus its resources on growing its core businesses." John Rochon Jr, vice chairman at CVSL, added: “Kleeneze has an extensive product line, a nearly century-long heritage, a well-known brand and a robust presence throughout the UK. We believe Kleeneze will be an outstanding addition to our CVSL family of companies. Kleeneze gives CVSL a very significant presence in the UK and represents an important step forward in CVSL’s international expansion."