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Gullane buys World Records business

British entertainment firm Gullane, owner of "Thomas the Tank Engine", steamed ahead on Sunday with the purchase of Guinness World Records from drinks group Diageo Plc for 45.5 million pounds.

The internationally-renowned Guinness World Records compiles, accredits and publishes information on world records and reaches over 70 million consumers annually in 82 countries and 24 languages.

Completion of the cash deal, to be satisfied from new bank debt, is subject to approval by the shareholders of Gullane Entertainment Plc and is expected to take place in July, Diageo said in a statement.

For Diageo the deal reflects the wine and spirits group's increasing focus on its core business.

Gullane said it believes its experience in television and licensing will generate significant opportunities to increase exploitation of the brand.

"Guinness World Records is an outstanding intellectual property which significantly enhances Gullane's position as a family entertainment studio," Gullane Chief Executive William Harris said.

The company said it expects the acquisition will be earnings enhancing before taking account of goodwill amortisation for the year ending June 30, 2002. Alongside the "Thomas the Tank Engine" character, Gullane owns the hand puppet "Sooty" and children's zany art brand "Art Attack".

Guinness World Records generated revenue of 23.3 million pounds and pre-exceptional operating profit of 5.7 million pounds in the year to June 30, 2000.

The Guinness Book of Records lists a series of extraordinary facts and achievements and was started in 1955 when Guinness was purely an Irish brewing company.

The book was the brainchild of Hugh Beaver, then managing director of Guinness, as a definitive source of information to settle general knowledge and trivia questions.

Diageo said it was confident that Gullane will provide GWR with the right platform for its further development and that the transaction offered a strong future for GWR and its employees.

"The sale of Guinness World Records underlines our commitment to focus on our core business as the world's leading premium drinks company," said Diageo Group Finance Director Nick Rose.

Diageo last year announced plans to float off Burger King, sell its US food unit Pillsbury and expand its wines and spirits side by buying a portfolio of products from the Seagram's drinks empire.

Diageo was advised on the GWR sale by US investment bank Goldman Sachs International.

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