Homeware brands retailer Ultimate Products has signed a deal with the owner of Russell Hobbs which is worth around £20m a year to the Greater Manchester company.
The business has renewed its trademark licence agreement with Spectrum Brands, which grants the Group an exclusive licence to use the Russell Hobbs trademark in the United Kingdom, Europe, Australia and New Zealand for non-electrical kitchen and laundry products.
Ultimate Products said the new deal is on a rolling four-year basis, rather than the previous fixed-term arrangement due to end in March 2023.
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The group said that "significantly reduces" its risk as the licence will always have four years to run, rather than having a fixed end date.
Russell Hobbs is a British heritage kitchenware brand for which Ultimate Products has had the licence for cookware lines since 2011. The group's licence with Spectrum Brands does not include Russell Hobbs electrical appliances.
In FY22, the group generated unaudited revenues of £20.2m under the Russell Hobbs trademark, representing 13.1% of its total revenue for that period.
Simon Showman, chief executive of Ultimate Products, said: "We are delighted to continue our relationship with Spectrum Brands and are privileged to be able to use the Russell Hobbs trademark on a range of non-electrical kitchen and laundry products.
"Moving from a fixed-term arrangement to a rolling four-year contract decreases the ongoing licence risks, allowing us to focus on the long-term growth of the brand, which will increase the benefits of the partnership for both Spectrum Brands and Ultimate Products."
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