Clothing supplier Williams Baird Plc announced on Friday it has reached agreement for the sale of certain stock and assets relating to its Dannimac rainwear brand to Signature Brands International Ltd.

The compay also revealed it has entered into a licence agreement entitling Signature Brands to use the Dannimac name and trademark together with other names and trademarks associated with the rainwear business, with completion due on January 25, 2002.

In a statement, William Baird said the consideration for the stock and assets is £900,000, payable in cash on completion and that total licence fees payable will not be less than £1.9 million over the period to Jan 31 2007.

In addition, Signature Brands has an option to acquire the brands at the end of the licence period for £300,000, with the proceeds of the disposal, totalling £3.1m, used to reduce Group borrowings.

The net book value of the stock and assets being sold is £800,000 and in the financial year ended December 31 2000, the rainwear business made a pre-tax profit of £900,000.