Last checked at 3 Jul 2009 07:00
TRISTEL plc
("Tristel" or "the Company")
AIM: TSTL
Acquisition of intellectual property and manufacturing rights
Placing of 2,688,287 ordinary shares at 41p to raise £1m net of expenses
Tristel plc ("Tristel"), the specialist infection and contamination control company, announces the acquisition of the intellectual property and manufacturing rights for the portfolio of infection control products manufactured by Medichem International (Manufacturing) Limited ("Medichem") for a total consideration of not less than £2.15m but subject to a maximum of £2.4m.
The portfolio includes the surface disinfectant product "TriGene Advance", which is a market leader in the animal healthcare market. The portfolio utilises a number of antimicrobial chemistries. The Medichem portfolio will continue to be distributed by Medichem International (Marketing) Limited.
Tristel believes that the acquisition is highly complementary to its existing product portfolio which is based on its proprietary chlorine dioxide technology and solely focused on the human healthcare market.
Of the total consideration, £1m sterling is to be paid in cash out of the net proceeds from a placing of 2,688,287 ordinary shares ("New Ordinary Shares") at 41 pence with the balance payable in cash over five years depending on the annual sales generated from the Medichem product portfolio. The placing was arranged by Daniel Stewart & Company Plc, Nominated Adviser and Broker to Tristel. The placing was three times over subscribed.
The Medichem product portfolio generated sales in the year to 31 December 2008 of £2.064m. Tristel expects the acquisition to be earnings enhancing in its financial year commencing 1 July 2009, although the transfer of production to its Newmarket manufacturing facility will be phased in gradually over the first half of the financial year.
Tristel established its manufacturing facility in 2007 to enable it to take over from Medichem the production of its chlorine dioxide products.
Paul Swinney, CEO of Tristel, commented:
"The acquisition of the Medichem portfolio is a significant expansion of our presence in the global infection control market. It brings to Tristel a portfolio of new biocidal chemistries and well-established, market leading brands. They are marketed by a very capable and successful commercial partner led by Rick Hayman, with whom we have enjoyed a close relationship for over fifteen years".
The New Ordinary Shares are expected to admit to trading on 6 July 2009. Following admission, the Company will have 29,571,167 Ordinary Shares in issue all of which carry voting rights. This figure may be used by shareholders of the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change their interest in, the share capital of the Company.
Contacts
| Tristel plc | Tel: 01638 721 500 |
| Paul Swinney, Chief Executive | |
| Daniel Stewart & Company Plc | Tel: 020 7776 6550 |
| Graham Webster | |
| Walbrook PR Ltd | Tel: 020 7933 8787 |
| Paul McManus | Mob: 07980 541 893 |
| paul.mcmanus@walbrookpr.com |