Watts Blake Bearne - Acquisition Completed

RNS No 6816n
WATTS BLAKE BEARNE & COMPANY PLC
4th January 1999


Watts  Blake Bearne & Co PLC Acquires German Clay and Feldspar
Quarries from Villeroy & Boch

On  31  December  1998, Watts Blake Bearne &  Co  PLC  ("WBB")
completed  the acquisition of substantial additional quarries,
plant  and  mineral reserves in Germany.  WBB is  the  world's
leading  producer  of 'ball' or 'plastic'  clays  for  use  in
sanitaryware,   tiles,   tableware,   and   many   non-ceramic
applications.

The  acquisition  was made from Villeroy  &  Boch  AG  ("V&B")
through   WBB's  wholly-owned  German  subsidiary,  Fuchs'sche
Tongruben  GmBH  &  Co KG ("Fuchs") at a  price  of  DEM  32.5
million  (approximately GBP 11.6 million/EUR 16.6  million  at
year-end  exchange rates).  The consideration  is  payable  in
cash by 15 January 1999.

The purchase price will be satisfied from the Group's existing
cash  resources, together with additional borrowing from  pre-
existing,   unsecured  facilities.   Having  paid  the   final
instalment  for WBB's previous German acquisition  (Berggarten
and  Unnerwald, bought in December 1997) in December 1998, the
pro-forma gearing indicated as at 31 December 1998 would  have
been approximately 50% (31 December 1997 = 30%).

The  purchased assets include access to 13 million  tonnes  of
raw material resources, all located in Germany. These comprise
V&B's  ball  clay extraction operations (including  ball  clay
quarries  at Mogendorf in the Westerwald region and  Adendorf,
near  Bonn),  associated  contracts and  the  feldspar  quarry
"Turkismuhle"  near  Saabrucken.   WBB  will  take  over   the
contracts  of  50  employees  of V&B,  together  with  certain
distribution and joint extraction agreements.

During  1998,  the acquired quarries produced  gross  external
revenue  of  DEM 11 million (V&B figures) and  were  also  the
source of raw materials for V&B internally.  WBB has secured a
long-term  supply contract with V&B and expects turnover  from
the quarries to be approximately DEM 14 million in 1999.

The  acquisition is expected to reduce substantially the costs
necessary to access the high-quality Berggarten reserves  (see
above),  which  are immediately adjacent to Mogendorf.   Other
synergies  are  also  expected which  will  improve  the  cost
structures  of  the  operations  being  acquired  and  thereby
optimise return on investment.

For  commercial  reasons,  WBB does  not  disclose  divisional
profitability;  however, incrementally (after  amortising  the
full purchase price on appropriate bases) the operating margin
anticipated from the acquired ball clay operations will  match
the  highest  level  currently earned by any  of  the  Group's
operating divisions.

At  current rates of extraction, the anticipated life  of  the
acquired quarries ranges from approximately 10 years  to  over
50 years.

The  transaction  is  subject to post-merger  notification  in
Germany  and  clearance by the German competition  authorities
(Bundeskartellamt).

Dr  Graham  Lawson,  WBB's Chief Executive said,  "This  asset
purchase  complements our German Division's  existing  mineral
portfolio  in the Westerwald, and at the same time  reinforces
our  long-standing relationship with Villeroy & Boch.  WBB has
always  been proud to have such a prestigious customer and  we
look  forward to being their raw material supplier  of  choice
well into the new millenium."

Inquiries should be directed to:

1.    UK  -  Graham Lawson (Group Chief Executive)   telephone
+44 (0)1626 332345
                                        fax +44 (0)1626 332344

2.      Germany   -   Gerhard   Hillebrand   (Geschaftsfuhrer)
telephone +49 (0)2623 830
                                        fax +49 (0)2623 8351

END

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