StockMarketWire.com - Findel has agreed to sell its subsidiary Kleeneze to Trillium Pond AG, a subsidiary of CVSL Inc, for £3.6m, a substantial majority being payable in cash and the remainder in CVSL shares.

The transaction - which is expected to complete before the end of March - is conditional upon CVSL obtaining formal approval from the NYSE and other customary completion matters.

Findel says the proceeds - including those realised from the sale of CVSL shares - will be used to reduce the group's bank debt.

In addition, as part of an arm's-length agreement, Express Gifts will continue to provide Kleeneze with distribution and other support services on an exclusive basis for a minimum period of 18 months.

Kleeneze is one of the UK's leading home shopping businesses supplying a broad range of household and health & beauty products across the UK and Ireland.

Findel said that following an approach from CVSL, the board assessed the opportunities and prospects for Kleeneze and concluded that it was in the best interests of shareholders and members of the Kleeneze network to proceed with this transaction.

Findel says the sale of Kleeneze will streamline the group and enable it to focus its resources on growing its core businesses.

Chief executive Roger Siddle said: "CVSL represents a natural home for Kleeneze. We believe that this transaction is in the best interests of both Findel and Kleeneze, allowing Kleeneze to benefit from the extensive expertise and support of CVSL whilst allowing Findel to focus its resources on growing its core businesses."




At 9:51am: [LON:FDL] Findel PLC share price was +10.5p at 211p



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