Mothercare plc

License agreement with Ebebek Mağazacılık A.Ş.  

Mothercare plc ("Mothercare" or "the Company"), the leading specialist global brand for parents and young children, is pleased to announce a new license agreement for Turkey, with Ebebek Mağazacılık A.Ş.  ("Ebebek"). Ebebek is the leading retailer in this sector in Turkey meeting all  the needs of mother and baby from the prenatal period up to the age of four.

In Turkey, Ebebek has around 280 stores and an on line business producing revenues of around £400m, together with 3 stores recently opened in the UK. The new license agreement will give Ebebek the exclusive right to use the Mothercare brand in Turkey on products either designed and sourced by Ebebek or Mothercare for a period of 10 years. It also gives Mothercare the right to re-brand certain Ebebek own brand products with the Mothercare brand and sell outside of the territories where Ebebek trades.

Clive Whiley, Chairman of Mothercare, commented:

"Today's agreement following on from our joint venture with Reliance Industries announced last year is further evidence of the strength, inherent value and global appeal of the Mothercare brand and the value it can add, with businesses that are already market leaders in their territory. We look forward to working together with Ebebek to establish Mothercare as an important part of their business.

We are in discussions with several other parties to further restore critical mass alongside delivering our other core objectives. The underlying business continues to prove its resilience, and the strength of the brand is evident from the interest it generates and the ongoing discussions with other potential strategic partners."

New License Agreement

Mothercare and Ebebek have entered in to a 10 year agreement, giving Ebebek the exclusive right, solely within Turkey, to use the Mothercare brand on products they design or source, subject to our prior approval and in accordance with our guidelines and standards. Ebebek may also purchase Mothercare branded products from us solely for sale within Turkey. On the sale of any Mothercare branded product Ebebek will pay a percentage of the sale as a royalty. The agreement also allows Mothercare to purchase products Ebebek has sourced for itself, either under its own brands or Mothercare, for sale by our franchise partners outside of the territories where Ebebek trades and to re-brand these products with the Mothercare brand if relevant.

The shares of Ebebek, which went public in 2023, are traded on Borsa Istanbul's Stars Market under the code EBEBK.

This new agreement will not only provide additional revenue to our Company but will also potentially enable us to obtain synergies and the resultant benefits, from combining the purchasing power of our two businesses.

Investor and analyst enquiries to:

Mothercare plc                                                            Email: [email protected] 
Clive Whiley, Chairman
Andrew Cook, Chief Financial Officer                                                     
                                          
Deutsche Numis                                                          Tel: 020 7260 1000
(NOMAD & Joint Corporate Broker)         
Luke Bordewich
Henry Slater

Cavendish Capital Markets Limited                          Tel: 020 7220 0500
(Joint Corporate Broker)                                  
Matt Goode

Media enquiries to:
MHP                                                                                Email: [email protected]
Rachel Farrington                                                          Tel: 07739 312199

Tim Rowntree