SPRUE AEGIS PLC: Extension of exclusive distribution agreement with BRK 21 March 2014 Sprue Aegis plc ("Sprue" or the "Company") Extension of exclusive European distribution agreement with BRK Brands Europe Limited ("BRK Brands") and its ultimate parent company, Jarden Corporation ("Jarden") Sprue is pleased to announce that it has entered into a three year extension to its existing exclusive distribution agreement with BRK Brands and Jarden. The extension, which is on improved terms, comes into effect from 1 April 2015, when the existing distribution agreement expires. Under the terms of the new agreement, Sprue has retained the exclusive rights to distribute the products and brands of BRK Brands, namely, First Alert, BRK and Dicon throughout Europe. The key terms of the agreement are as follows: * Annual distribution fee (£4.2m payable currently) to be reduced to £3.5m, £3.0m and £2.9m in calendar years 2015, 2016 and 2017 respectively; and * Minimum term of three years to 31 March 2018 with twelve months' notice required by either party to terminate the agreement. Unless terminated, the agreement automatically renews on the same terms for further periods of twelve months. As part of the negotiations, Sprue has also secured improved manufacturing terms from Detector Technologies Limited ("DTL"), a Jarden company, which supplies Sprue's own-brand smoke alarms and other associated accessories: * Improved credit terms equivalent to two months' purchases; * Right to source products at a fixed GBP / USD exchange rate of US$ 1.62, removing foreign exchange rate risk on these purchases which are currently in USD; and * Fixed product prices for two years from 1 January 2014. Graham Whitworth, Chairman and Group CEO commented: "We are extremely pleased to have extended our exclusive right to distribute the BRK Brands products in Europe for a further three years from 1 April 2015. This agreement consolidates Sprue's position as the leading home safety products supplier in Europe and is a good deal for the Company and all stakeholders." - Ends - The Directors of the issuer accept responsibility for this statement. For further information, please contact: Sprue Aegis plc 02476 323 232 Graham Whitworth, Chairman & Group CEO John Gahan, Group Finance Director Westhouse Securities 0207 601 6100 Tom Griffiths Paul Gillam Notes to Editors About Sprue Aegis plc Group overview With its head office in Coventry, UK, Sprue is one of Europe's leading home safety products suppliers and manufactures one of the world's smallest carbon monoxide sensors for use in carbon monoxide alarms. Sprue designs and sells smoke and carbon monoxide alarms and other safety related products throughout Europe under the FireAngel, AngelEye, Pace Sensors, First Alert, BRK and Dicon brands. Sprue enjoys a strong European market presence, a leading UK retail footprint, is the supplier of choice to the UK's Fire and Rescue Services and continues to develop its market share in the UK's trade sector. Sprue has an established network of independent distributors within Continental Europe providing access into these key growth markets through local partners. Patented technology Sprue has patented technology in Europe, the US and other selected territories and its range of smoke and carbon monoxide alarms is independently certified to the latest European standards. For further product information, please visit: www.fireangel.co.uk or www.firstalert.eu or www.brkdicon.eu/en or www.sprue.com. END -0- Mar/21/2014 07:00 GMT
SPRUE AEGIS PLC: Extension of exclusive distribution agreement with BRK
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