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Polygiene acquires business related to SteriTouch
Swedish company Polygiene AB has this week announced that, through the indirectly wholly-owned subsidiary Addmaster (UK), it has entered into an agreement to acquire the business related to SteriTouch from the privately owned English company Radical Materials.
The purchase price amounts to - approximately, £3.5 million (SEK 43.2 million), where £3.15 million (SEK 38.9 million) is paid in cash and the remaining £0.35 million (SEK 4.3 million) is paid through newly issued shares in Polygiene.
The cash payment is intended to be financed through a directed cash new issue in Polygiene; alternatively, by available funds. In addition to the fixed purchase price, Radical Materials may also receive an additional purchase price in cash of up to £0.5 million (approximately SEK 6.2 million) based on the sales growth for the Business during 2022.
There are excellent opportunities for Polygiene to increase its market share in antimicrobial products for plastics, coatings and paints, thanks to the acquisition, which means that Polygiene will 'buy' the customers and incorporate them into Addmaster's production set-up.
"The acquisition of SteriTouch is fully in line with our new growth strategy and the obvious synergies with Biomaster's anti-microbial business, makes this a very welcome addition to the group", says Ulrika Björk, CEO of Polygiene.
Radical Materials' Nick Corlett, says:
"We have enjoyed a friendly competitive relationship with the Addmaster team for many years and have always held them in high regard. The antimicrobial sector is growing rapidly, and we are delighted for SteriTouch to join the Polygiene group, where we expect it to continue to flourish."
Radical Materials is known for its product ranges Konduct, Scopic, Steritype and SteriTouch, which primarily consists of an antimicrobial product range. The largest share of SteriTouch's sales is through direct sales and SteriTouch is expected to achieve a net sales growth of approximately 20% during the full year 2021, compared to the same period last year.
For 2021, the Business (based on unaudited preliminary figures) are expected to have a total turnover of approximately £1.39 million with a gross profit of approximately £0.71 million.
Completion of the transaction is subject to customary closing conditions. Provided that these are met, closing is expected to take place around 24th January 2022.
20th January 2022