Zenith Hygiene Group plc (“Zenith” or “the Group”), the manufacturer and supplier of cleaning and non-food ancillary products to the food service and hospitality markets, announces that it has acquired the entire issued share capital of Renaissance Laundry and Cleaning Supplies Limited (“Renaissance”).  The consideration is £500,000 of which £250,000 was paid in cash at completion and £250,000 is in the form of non-interest bearing loan notes repayable in six months.

Renaissance, founded in January 2000, is based in Ross-on-Wye and is a supplier of laundry and cleaning products, mainly to the healthcare and nursing home sectors.  The largest customer, accounting for the majority of Renaissance sales, is a leading nursing home operator with homes across the United Kingdom.  Renaissance’s latest unaudited accounts to 28 February 2005 show turnover of £1.1 million, profit before tax of some £60,000 and net assets of approximately £10,000.

Zenith aims to improve the profitability of the Renaissance business by:

• manufacturing the laundry chemicals supplied by Renaissance in-house at Zenith’s manufacturing plant at SB Chemicals in Northern Ireland;
• eliminating duplicated head office functions; and
• incorporating distribution into the wider Group delivery network to reduce distribution costs.

The board of Zenith expects the acquisition to be earnings enhancing in the first full year of acquisition.

Commenting on the acquisition, Ringo Francis, Chairman & Chief Executive, said:

“In line with our strategy, we are delighted to be adding Renaissance to the Group and adding customers within the growing nursing home sector.  The investment we have made in our support infrastructure and our manufacturing capability will enable us to improve the margin earned on Renaissance’s sales going forward.”

For further information, please contact:

Zenith Hygiene Group plc
Ringo Francis, Chairman and Chief Executive
Richard Colwell, Finance Director
01707 270 260 

Beattie Communications
Tim Blythe
Tracy Lloyd-Watts
020 7053 6000