Sale of holding in Hardide

12 Feb 2007 07:01

Proventec PLC12 February 2007 Press Release 12 February 2007 Proventec Plc ("Proventec" or "the Company") Sale of remaining 21.5% holding in Hardide Proventec Plc (AIM:PROV), a provider of specialist steam cleaning and coatingstechnologies, today announces that through its subsidiary, Flintstone ManagementServices Limited ("FMS"), the Company has raised £2.3 million (after expenses)via the sale of FMS's remaining 21.5% stake in AIM-listed Hardide plc ("Hardide"). The sale of 31,499,725 ordinary shares in Hardide via a Placing to Hardide'scurrent shareholders marks a full exit from Hardide by Proventec and is in linethe Company's stated strategy of exiting non-core investments. The exitprovides Proventec with a net profit of £0.7 million and the proceeds of thePlacing will be used to continue the development of Proventec's core businessesin hygienic solutions and preventative coatings. Ellis & Company advisedProventec and Hardide on the Placing. David Chestnutt, Chief Executive of Proventec, said: "This full exit fromHardide follows on from the reduction the Company announced back in May 2006and, as stated then, it makes strategic sense for both parties. Through oursubsidiary, FMS, we have been long term original holders in Hardide and havebeen financially supportive through Hardide's corporate development and we wishthem well in the future. "Our policy of exiting non-core investments in recent months places the Companyin a strong position to facilitate the next stage of our own growth ambitions.We are keen to expand our execution capabilities in marketing and sales in-houseas well as actively pursuing joint ventures and complementary acquisitionsparticularly in Europe and North America." Following this Placing of shares, David Chestnutt, the current non-executiveChairman of Hardide, will relinquish his position from the Hardide Board, witheffect from 31 March 2007. - Ends - For further information, please contact:Proventec PlcDavid Chestnutt, Chief Executive Tel: + 44 (0) 151 706 0626dchestnutt@proventecplc.com www.proventecplc.com Dawnay, Day Corporate Finance LimitedDavid Rae, Corporate Finance Tel: + 44 (0) 20 7509 4570david.rae@dawnayday.com www.dawnayday.com Media enquiries:AbchurchHenry Harrison-Topham / Gareth Mead Tel: +44 (0) 20 7398 7700gareth.mead@abchurch-group.com www.abchurch-group.com Notes to editors: Proventec plc manages a complementary portfolio of integrated businesses thatspecialise in hygienic solutions and preventative coatings technologies.Headquartered in Liverpool, the Company operates in global markets, pioneeringdevelopments within the healthcare, food manufacturing, hospitality industries,transportation, construction, and other sectors. The Company's hygienic solutions division includes OspreyDeepClean, the world'sleading provider of chemical-free specialist dry saturated steam cleaningtechnology, which has been successfully proven in trials with University CollegeLondon Hospitals to combat the spread of common bacteria and healthcareassociated infections such as MRSA and Clostridium difficile. The market forhygienic solutions is currently dominated by conventional cleaning methods andsystems which are often labour intensive and require extensive use of water andtoxic chemicals. At the same time most of these cleaning methods only servegeneral cleaning purposes but do not sufficiently address more elaboratehygienic concerns, especially with regards to food safety and hospital acquiredinfections. Proventec, through its coatings division, is also a leading provider of non-toxic, phosphorous based, coatings and chemicals for wood and wood basedproducts, wool, cotton and plastics. The division includes Magma, a developerof flame and fire retardant products, which is the first company to obtainEuropean approval for the fire retardant treatment of plywood and has met thehighest standards of the EU classification system, EN13501-1. Proventec has an active R&D programme for the development and improvement of itstechnologies and applications, and co-operates with companies and technicalinstitutes across Italy, Germany, Holland and the UK. Supported by a changinglegal and political international environment, Proventec is answering anincreasing consumer demand for hygiene and safety, and is creating distinctiveand proprietary positions within these markets. For further information please visit www.proventecplc.com Hardide plc provides and applies tungsten carbide coatings to a wide range ofengineering components. The Company's patented technology is unique in that itcombines both abrasion and corrosion resistant properties in one coating. Whenapplied to components, the technology is proven to offer dramatic cost savingsthrough reduced downtime and extended component life. Customers include leadingcompanies operating in oil and gas exploration and production, valve and pumpsmanufacturing and general engineering. This information is provided by RNS The company news service from the London Stock Exchange