Acquisition

RNS Number : 9287D

Versarien PLC

03 February 2015

 



3 February 2015

Versarien plc

("Versarien plc" or the "Company")

Acquisition of the business and certain assets of Custom Systems Limited

Management identifies considerable synergies for Versarien's

copper foam business

Versarien plc (AIM:VRS.L), the advanced engineering materials group, is pleased to announce that it has acquired out of administration the business and a majority of the assets of Custom Systems Limited ("CSL") for an initial cash consideration of £206,000. The acquisition provides both companies with a number of synergies.

Based in Avonmouth near Bristol, CSL is a manufacturer of all manner of extruded aluminum products, and heat sinks for the electronics and computing industries as well as for large machinery and generators.

Together, the businesses are able to offer a wider range of thermal products. The acquisition also gives Versarien access to CSL's prestigious customer base and will provide potential new routes to market for Versarien Technologies' recently developed porous copper air heat sink products.

Following completion CSL's operations and manufacturing facilities will be relocated to Versarien's headquarters in Mitcheldean, Gloucestershire.  This will provide both business with operating efficiencies and increased sales coverage.

In the year ended 31 December 2014 CSL recorded sales of £3.6 million (FY 2013: £2.9m) with operating losses of £187,000. Of this approximately 60% of sales related to aluminum extrusions and heat sink products.

Details of acquisition

In addition to the plant and stock and all rights pertaining to the business, Versarien has also acquired over 90% of the current sales order book relating to aluminum extrusions and heatsinks, amounting to approximately £400,000.

The initial consideration is subject to a post-completion adjustment based upon the agreed stock level and the agreed order book at completion.  Any adjustment is not expected to be material, and will be satisfied by a single cash payment within three months of completion.

Neill Ricketts, CEO of Versarien said: "This is an important acquisition which fits well with our strategy to provide customers with a range of standard and customer specific thermal products, including our patented porous metal foam technology.

"Our further aim is to preserve the maximum number of jobs we can and we look forward to welcoming our new colleagues into the team and sharing our expertise and industry knowledge.  CSL's customers can be assured of a continuation of the high level of service they have come to expect, as well as the opportunity to access an expanded range of products."

For further information:

Versarien Plc
Neill Ricketts, Chief Executive Officer	Tel: [phone]
Chris Leigh, Chief Financial Officer	www.versarien.com

Charles Stanley Securities Nominated Adviser and Broker
Mark Taylor / Russell Cook	Tel: [phone]

Media enquiries:

Abchurch Communications Limited
Henry Harrison-Topham / Jamie Hooper	Tel: [phone]
[e-mail]	www.abchurch-group.com

Notes to Editors

Versarien™ plc(AIM:VRS), is an advanced engineering materials group. Leveraging proprietary technology, the Group creates innovative engineering solutions for its clients in a diverse range of industries.  Versarien has two wholly owned subsidiaries, Versarien Technologies Ltd and Total Carbide Ltd, and holds an 85% stake in 2-DTech Ltd.

Versarien Technologies Limited ("VTL")

VTL owns the exclusive rights to a patent-protected additive process for creating advanced micro-porous metals.  Versarien primarily targets the thermal management industry exploiting the superb thermal properties exhibited by such materials.  The company's lead product is VersarienCu™, a micro-porous copper which on incorporation into liquid cooling systems, can improve efficiency by up to ten times. http://www.versarien.co.uk/

2-DTech™ Limited

On 1 May 2014, Versarien acquired 85% of the issued share capital of 2-DTech, a company closely aligned with The University of Manchester, the established home of graphene technology.  2-DTech specialises in the supply, characterisation and early stage development of graphene products.  2-DTech also works closely with industry and researchers to help turn scientific innovation into groundbreaking products.  The acquisition will enable Versarien to apply its experience and expertise to commercialising graphene in the UK; demand for which is set to grow exponentially over the coming years.  For further information about 2-DTech visit http://2-dtech.com/

Total Carbide Limited ("TC")

TC is one of the leading European manufacturers of sintered tungsten carbide, with a global customer base covering over forty different industries. It primarily manufactures arduous environment products for application in the oil and gas industry, along with multiple other industries.  TC provides VTL with access to high volume manufacturing assets that have significantly expanded production of VersarienCu™. http://www.totalcarbide.com/

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