Ultimate Products, the owner, manager, designer and developer of an extensive range of value‑focused consumer goods brands, has completed the acquisition of Salter Brands Limited from FKA Brands Limited.
Salter is believed by the Directors to be the UK’s oldest housewares brand. It dates back to 1760, when Richard Salter, a spring maker, began making the first spring scales in the UK from the village of Bilston in the West Midlands. By 1825, his nephew George had taken over the company, which became known as George Salter & Co. George later established a manufacturing site in the town of West Bromwich, and West Bromwich Albion Football Club was formed from workers at the site.
Salter is a market leader in bathroom and kitchen scales and has expanded into other product categories such as kitchenware and health devices. It serves consumers through eCommerce and traditional retail channels in the UK (including Amazon, eBay, Tesco, ASDA, Sainsbury, Lidl and Argos) and with a growing international presence.
Included in the acquisition is Salter’s range of high precision kitchen scales, timers and thermometers that it has developed in partnership with the renowned British chef Heston Blumenthal.
Commenting on the acquisition, Simon Showman, Chief Executive Officer of Ultimate Products said: “The Salter name is synonymous with quality and reliability, and millions of households across the UK own a set of their scales or one of their many outstanding kitchenware products. Few other brands can boast of such a fantastic history and heritage, which includes playing a key role in the creation of West Bromwich Albion Football Club. We are delighted to be adding such an illustrious brand to our portfolio and are honoured to be taking it into the next chapter of what has been a fascinating story since it began in 1760.
“I would like to thank everyone involved in the transaction for their hard work in delivering such a successful outcome, and our long-term banking partner HSBC UK for their ongoing support.”
Salter’s product portfolio includes:
- Bathroom scales: Salter sells mechanical and electronic bathroom as well as analyser scales that can measure body mass index.
- Kitchen scales: Salter sells mechanical, electronic and connected kitchen scales in a wide range of models and designs
- Other kitchenware: Salter’s wider kitchenware offering includes electronic and manual salt and pepper mills, kitchen thermometers, kitchen timers, handheld electronic milk frothers and stainless-steel reusable straws.
- Diagnostic and Healthcare: Salter has a small range of diagnostic health devices including thermometers, blood pressure monitors and oximeters.
Ultimate Products acquired Salter for an initial cash consideration of £32.0 million on a debt-free, cash-free and normalised working capital basis. A further deferred consideration of £2.0 million is payable in cash in four tranches over 24 months from the completion of the acquisition. The Company carried out an equity fundraising to raise approximately £15.0 million (before expenses), which were used to fund part of the initial consideration. In addition, the Company also entered into a new additional £10.0 million conditional term loan agreement with HSBC Bank plc to part-finance the initial consideration. This facility, which runs to 1 October 2024 will sit alongside the Group’s existing bank facilities, including but not limited to a revolving credit facility with HSBC UK.