SPRUE AEGIS PLC: Extension of exclusive distribution agreement with BRK

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
 
 
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