Tristel PLC
06 June 2006
Tristel plc
Acquisition of Vernagene Limited completed
Tristel plc ('Tristel'), the healthcare business which uses its proprietary
chlorine dioxide chemistry to create infection control products for hospitals,
announces that it has completed the acquisition of Vernagene Limited
('Vernagene'), the chlorine dioxide specialist focusing on the water treatment
and food processing industries, for £1m.
It was announced on 23 May 2006 that Tristel had exchanged contracts for the
acquisition of Vernagene, an acquisition that will be immediately earnings
enhancing.
Vernagene, which is based in Bolton, focuses on water treatment and purification
and hygiene control within the food processing industry. It has been divested by
Verna Group Holdings Limited.
Vernagene employs six people and in the year ended 31 March 2006 achieved sales
of £1,177,000 (2005: £1,145,000 and 2004: £906,000) and pre-tax profits of
£301,000. As at 31 March 2006, Vernagene had net assets of £289,000. Tristel has
purchased the share capital of the company for £1m in cash and may pay an
additional sum of up to £100,000 on an earn-out basis. The acquisition will be
funded using existing cash resources (i.e. surplus cash from flotation and
operations) and a short term loan of £200,000 from one of its shareholders. The
Company intends to refinance this loan with commercial bank term debt. Currently
Tristel has no debt.
The acquisition will extend Tristel's reach beyond the infection control market
in hospitals, where it has focused its activities to date, enabling it to expand
into new markets where chlorine dioxide is increasingly being used. Vernagene
has approximately 200 customers in the government, municipal, industrial,
healthcare and food sectors. Importantly, Vernagene provides water treatment
solutions to approximately 40 UK hospitals, where its products are used for
Legionella control, whilst Tristel supplies approximately 400 hospitals with its
instrument and surface disinfection products. The Board believes there will be
significant cross selling opportunities.
The acquisition will also present an opportunity for Tristel to apply its sales
and marketing skills to the Vernagene product offering as well as the
opportunity to combine Tristel's patented technology and unique delivery systems
with Vernagene's chlorine dioxide chemistry.
ENDS
Tristel plc Parkgreen Communications Ltd
Paul Swinney, Chief Executive Paul McManus
Paul Barnes, Finance Director (paul.mcmanus@binnspr.co.uk)
Tel: 01638 721 500 Tel 020 7786 9600
http://www.tristel.com Mob: 07980 541 893
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