Xeros Technology Group plc Acquisition (5113I)
March 22 2018 - 2:00AM
UK Regulatory
TIDMXSG
RNS Number : 5113I
Xeros Technology Group plc
22 March 2018
22 March 2018
Xeros Technology Group plc
Xeros expands US coverage with acquisition of another personal
protection equipment cleaning business
Xeros Technology Group plc (AIM: XSG, 'Xeros', 'the Group'), the
developer and provider of polymer based technologies with multiple
commercial applications, has today acquired Gloves Inc. ('Gloves'),
which provides, cleaning, inspection, and repair services for
firefighter personal protection equipment ('PPE'), from facilities
in Atlanta and Miami.
Gloves was acquired for an initial cash consideration of
US$800,000 with a further contingent cash consideration of up to
US$300,000, subject to certain growth targets. The initial
consideration was funded from the Group's existing cash resources.
For the year ended 31 December 2017, Gloves generated revenues of
US$0.99m and EBITDA of US$0.36m on gross assets of US$0.15m.
Xeros' strategy is to achieve national coverage by operating
specialist cleaning facilities serving the major US metropolitan
areas. The acquisition of Gloves, together with the acquisition of
MarKen PPE in July 2017, represent key milestones towards achieving
the goal of having four sites by the end of 2018, with national US
coverage expected to be achieved in 2019.
With 1.1m firefighters in the US, the annual value of the
firefighter PPE cleaning market is estimated to be US$330m.
The Xeros cleaning solution, which will be deployed at Gloves'
facilities, is highly effective at removing harmful contaminants
whilst also extending the life of expensive PPE garments. The
Gloves business will be integrated into Xeros' High Performance
Workwear Division and will immediately trade under the MarKen brand
name.
An increasingly stringent US regulatory environment is leading
to a significant rise in the outsourcing of the cleaning and
inspection of PPE to specialist independent providers such as
Gloves and MarKen. This is driven by increased understanding of the
health risks associated with soiled and contaminated PPE and in
turn, increasing awareness of the liability exposure associated
with poor compliance. Xeros' cleaning solution, is uniquely
positioned to meet this demand, which extends beyond firefighting
into the petrochemicals, mining and construction industries.
Mark Nichols, Chief Executive of Xeros, said:
"Our acquisition of Gloves is the next step in bringing the
transformational benefits of our technology to the entire US
firefighter PPE market. The learning and competence which we are
now acquiring will be the platform from which we can make our
technology available on a global basis for a number of high
performance workwear markets."
Enquiries:
Xeros Technology Group plc Tel: 0114 321
Mark Nichols, Chief Executive 6328
Officer
Paul Denney, Chief Financial Officer
Jefferies International Limited Tel: 020 7029
(Nominated Adviser and Joint Broker) 8000
Simon Hardy / Will Soutar
Berenberg (Joint Broker) Tel: 020 3207
Chris Bowman / Ben Wright / Amritha 7800
Murali
Instinctif Partners (Financial Tel: 020 7457
PR) 2020
Adrian Duffield / Helen Tarbet
/ James Gray
Notes to Editors
The US firefighter PPE market is a specialist market for the
cleaning, inspection and repair of uniforms and is valued at
approximately $330m p.a. With 1.1m firefighters in the US, there
are 350,000 professional firefighters based in approximately 8,000
fire crews. Nearly 40% of these professional firefighters are based
within 100 miles of one of the top 10 major US metropolitan areas.
Each professional firefighter has, on average, 2 sets of bespoke
turnout gear.
Xeros Technology Group plc (LN: XSG) is a platform technology
company that is reinventing water intensive industrial and
commercial processes by reducing water and chemistry usage with its
polymer technologies. Its patented technologies have the capacity
to provide material economic, operational and sustainability
improvements that are unattainable with traditional processes. The
Group is currently exploiting its intellectual property in three
areas: Cleaning Technologies, Tanning Technologies and Textile
Technologies. Xeros has a number of agreements in place with such
international organisations as BASF, Hilton and Wollsdorf
Leder.
For more information, please visit -
http://www.xerostech.com/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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