4imprint raises £24m from sale of Brand Addition

4imprint, the promotions company, is to sell its Brand Addition business to the private equity firm HIG Capital for £24m.

Brand Additions supplies promotional merchandise to medium and large businesses usually as part of an outsourcing arrangement.

For the six months ended July 2nd 2011, Brand Addition's unaudited revenue was £28.51m and unaudited operating profit was £2.04m.

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Of the £24m total, £22.75m will be paid up front with a further £1.25m in a year's time.

4imprint says it will use £12m of the proceeds to reduce the risk of its defined benefit pension scheme, with the remainder to be spent for general corporate purposes.

The stock had gained 2.7% by 10.44. Over the last 12 months 4imprint shares are up 7.2%,

BS