Acquisition

RNS Number : 2031Z

Byotrol PLC

13 March 2017

 

13 March, 2017

Byotrol Plc

("Byotrol" or the "Company") 

ACQUISITION OF WINCH PHARMA CONSUMER HEALTHCARE LTD

Byotrol plc, the specialist anti-microbial technology company, is pleased to announce the purchase of the entire share capital of Winch Pharma Consumer Healthcare Ltd ("Winch Pharma") for an initial cash consideration of £70k.  Deferred consideration of up to £44k will be payable in cash in 2018, subject to contract renewal by its key customer, the NHS Business Services Authority ("NHS Supply Chain" or "NHSSC").

Winch Pharma has one key asset, being a formal one year (extendable to three) contract to supply the NHSSC with non-alcohol hand sanitising products, plus certain other surface disinfection products, all under the Athenian brand.  Prior to the acquisition, Byotrol was supplying Winch Pharma with all its hand sanitising products, which were repackaged under the Athenian brand. 

Winch Pharma's revenue is predominantly from the NHSSC, although it also sells into other health and elderly-care providers.  The acquisition will allow Byotrol to benefit directly from Winch Pharma's recent growth, and secure 100% of the resulting margin, all from within existing Byotrol resources, and without having to engage in a lengthy process to become a new, formal NHSSC supplier.

No other assets (or liabilities) have been acquired as part of the acquisition, except for a 7 year exclusive license over the Athenian brand in healthcare in the UK. The Company expects to transition Athenian to Byotrol branding, dependent on discussions with the NHS Supply Chain authorities.

The Directors do not expect the acquisition to impact the Company's earnings in the current financial year, to 31 March 2017.  We do however expect this transaction to materially boost hand hygiene sales in the new financial year, particularly from sales into the NHSSC of our (previously announced) newly-patented formulation.

David Traynor, Chief Executive of Byotrol plc comments:

"We have had a good relationship with the owners of Winch Pharma as suppliers to them of small quantities of hand hygiene products. 

This transaction allows us instant and direct access to the growth in non-alcohol personal care products in the healthcare market and beyond.  It also ensures that existing customers of Winch Pharma will see continuity of supply and a pipeline of high-performance, innovative new products to fit within the new biocide regulatory landscape."

Enquiries:

Byotrol plc                                                                                                                                    01925 742 000

David Traynor - Chief Executive

finnCap Ltd                                                                                                                                 020 7220 0500 
(Nominated Adviser & Broker)

Geoff Nash/Carl Holmes/James Thompson - Corporate Finance

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

Notes to Editors:

  Byotrol plc (BYOT.L), quoted on AIM, is a specialist developer of residual antimicrobial technologies, identifying,   developing, formulating and commercialising cutting-edge antimicrobial solutions. 

 

  Our patented suite of technologies deliver powerful broad-spectrum efficacy with residual performance optimised   against commonly occurring and industry-specific pathogens 

 

Founded in 2005, the Company has developed the technology that creates easier, safer and cleaner lives

For more information, please go to www.byotrol.co.uk

 

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