IWP International, the household and personal care products company, has acquired Fine Fragrances and Cosmetics (FFC), a British distributor and manufacturer of toiletries, cosmetics and perfumes, for up to £8.75 million sterling (#13 million). FCC has a number of well-known brands. It acquired the five Yardley brands of Tweed, Panache, Lace, Chique and White Satin from the Yardley receivers last December for £1.3 million sterling (#1.9 million). These are expected to contribute significantly to the future growth of the business.

IWP's chairman, Mr Joe Moran, said the acquisition should add 1p (1.27 cents) to earnings per share this year. The initial consideration is £3 million sterling (#4.48 million) with a further three payments dependent on profits up to a maximum total of £8.75 million sterling. Mr Moran said he expects the earn-out to be achieved within the timescale.

FFC recorded a profit before tax of £1 million sterling and had net assets of £1.8 million sterling in the year to December 31st 1998. These figures did not include the contribution from Yardley and Mr Moran said FFC should achieve a profit of £1.5 million sterling this year on sales of £10 million sterling.

FFC was formed in 1982 by Mr Doug Fawcett who will continue as managing director under a three-year service agreement. FFC's main market is in Britain but it also sells outside its domestic market, particularly in the Middle East. Asked about the general trading of the group, Mr Moran said IWP should generate earnings per share in excess of the 25p (31.74 cents) projected for next year. It is in line to meet brokers' projections of 21p (26.67 cents) to 22p (27.93 cents) this year.