Tickers: XTSX:IPC, PINX:IPPQF
Tags: Children, Entertainment
Langley, BC / TheNewswire / October 19, 2017 - Iplayco Corporation Limited (TSX VENTURE: IPC) ("Iplayco" or the "Corporation") is pleased to announce that it has entered into agreements covering purchases of assets, intellectual property, and product distribution with three companies possessing long-established brands and sales networks in continental Europe. The acquisitions and new relationships are key components of a strategy targeting triple-digit percentage growth in Iplayco's European sales within 24 months.
The agreements encompass purchases of assets from Italy-based companies Play Way S.r.l. ("PW") and The Play Company S.r.l. ("TPC"). Also included is an intellectual property agreement with TPC and a distribution agreement with TPC and its wholly owned subsidiary Play Mart Co. S.r.l. ("PMC"). Once the acquisitions are concluded, Iplayco will own the intellectual property rights to the Play Mart and Play Planet brands, as well as the Play Planet line of business. The distribution agreements focus on supply of playground equipment.
Financial terms of the transactions involve an for an aggregate cash purchase price of EUR450,000 (approximately CDN$662,000) and 15% of pre-tax profit for the next five years of the Corporation's European operations, comprised of newly incorporated, and wholly owned, entities Play Planet S.r.l. in Italy and Play Mart International EOOD in Bulgaria.
Play centers and other customers in continental Europe accounted for approximately 10% of the $16.4 million in sales Iplayco recorded in the first nine months of its 2017 financial year. The Corporation believes there is excellent potential to make Europe a more prominent part of its sales mix by targeting specific jurisdictions and market segments with its line of high-quality play center products and design services, leveraging both the networks and brands owned by the new units.
Founded in 1994, TPC, through PMC, has sold over 8,000 play structures worldwide and developed a significant customer base with its highly reputable Play Mart brand of children's play equipment.
PW, founded in 1995, has developed nearly 50 franchises of children's entertainment centers operating under the Play Planet banner throughout Italy.
"We are very excited to have entered into agreements with some of the strongest brands in the European market for high-end play center equipment and services," said Scott Forbes, President and Chief Executive Officer of Iplayco. "This represents a significant step in our growth strategy for Europe. Play Mart is an industry leading brand, with a strong reputation for innovative designs, quality and durability. Its customer base and expertise in franchising is very attractive to Iplayco. The Play Mart and Iplayco brands of play equipment are complementary and together are expected to significantly increase our sales in Europe. With these transactions, we are also realigning our global supply chain to reduce costs and time to market. Our North American operations will continue to supply customers in the Americas and worldwide, our Asian operations will focus on supplying customers in the Asia-Pacific region, and customers in Europe, Middle East and Africa (the EMA region) will soon benefit from our manufacturing and distribution operations in Europe. Iplayco's market has always been global, and soon we will have the capabilities to supply our customers from three different continents."
About Iplayco Corporation Limited
Iplayco is a global leader in the design and supply of premium-quality, fun, safe and durable indoor playgrounds for children. In its 18-year history, Iplayco has sold over 3,000 playgrounds to over 60 countries worldwide. For more information, please visit www.iplaycoltd.com.
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Cautionary Note Regarding Forward-looking Statements
This news release contains "forward-looking statements" and certain "forward-looking information", within the meaning of applicable Canadian securities legislation, concerning the business, operations, financial performance and condition of the Corporation. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as "may", "will", "should", "expected to", "intend", "continue", "plans", or similar terminology.
Forward-looking statements and information are based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performances or achievements of the Corporation to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which Iplayco will operate in the future including but not limited to: unanticipated costs and expenses and uncertainties relating to the availability and costs of financing needs in the future.
Forward-looking statements and information are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of Iplayco to be materially different from those expressed or implied by such forward-looking statements and information, including but not limited to: fluctuation in foreign exchange rates and interest rates; stock market volatility; the requirement for regulatory approvals and third party consents; the impact of general business and economic conditions; risks related to international operations and government relations; liability, competition, loss of key employees and other related risks and uncertainties. Although the Corporation has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements and information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements or information. Iplayco does not undertake to update any forward-looking information that are contained or are incorporated by reference, except in accordance with applicable securities laws.
Important factors that could cause actual results to differ materially from the Corporation's expectations are disclosed elsewhere in documents that are available to the public.
For more information, please contact:
Iplayco Corporation Limited
Max Liszkowski
Chief Financial Officer and Corporate Secretary
(604) 607-1111
This announcement is for informational purposes only and does not constitute an offer to purchase, a solicitation of an offer to sell the shares or a solicitation of a proxy.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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