Versarien PLC Acquisition of AAC Cyroma (4504L)
October 03 2016 - 1:00AM
UK Regulatory
TIDMVRS
RNS Number : 4504L
Versarien PLC
03 October 2016
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014
3 October 2016
Versarien plc
Acquisition of AAC Cyroma
Versarien plc (AIM:VRS) ("Versarien" or the "Company" or the
"Group"), the advanced materials group, is pleased to announce the
acquisition ("the Acquisition") of AAC Cyroma Limited ("AAC
Cyroma"), a specialist plastics manufacturing business serving a
range of sectors including automotive and fast moving consumer
goods.
ACC Cyroma was established in 2002 and operates from a 45,000
square foot facility in Banbury, Oxfordshire. Using Versarien's
existing graphene manufacturing capabilities, in combination with
AAC Cyroma's knowledge, plant and equipment, the acquisition will
provide the Group with an ability to produce graphene enhanced
products for an established customer base, both domestic and
international, including leading automotive OEMs. Versarien
believes this will be the first dedicated graphene enhanced
plastics manufacturing factory in the world.
AAC Cyroma is being acquired for an initial cash consideration
of GBP1.395 million plus the assumption of approximately GBP264,000
debt and GBP266,000 in new Versarien shares ("the Consideration
Shares"). Up to an additional GBP200,000 of deferred consideration
will be payable based upon AAC Cyroma achieving pre-tax profit
targets for the years ending 31 December 2017 and 2018. The
transaction involves Versarien purchasing the entire share capital
of The Breakfast Club 2000 Ltd, a non-trading holding company
owning 85% of the shares of AAC Cyroma and 15% of the shares of AAC
Cyroma from an individual to give Versarien 100% ownership of AAC
Cyroma. The Consideration Shares will be issued at 10p, being the
average mid-market closing price at which shares in Versarien
traded for the 5 days immediately prior to completion on 1 October
2016; and will be the subject of a lock-in for the period of 12
months from completion.
Application will be made for the new Versarien shares to be
admitted to AIM and it is expected that dealings will take place
with effect from commencement of business on Friday 7 October
2016.
In the year to 31 December 2015 AAC Cyroma achieved sales of
GBP4.27 million with a profit before tax of GBP166,000 and EBITDA
of GBP375,000. Net assets at 31 December 2015 were GBP883,000.
James Baker, Graphene Business Director at the National Graphene
Institute (NGI) at The University of Manchester, commented:
"Graphene, first isolated in 2004 in Manchester, is already being
rapidly developed into a range of products and applications that
are starting to appear in the marketplace. Whilst initially these
products involve the addition of a graphene type material to
improve performance, we are now starting to see real improvements
in performance as quality and knowledge of the material improves.
Through partnership and collaboration with industry, the National
Graphene Institute is looking to accelerate the adoption of
graphene-based products and applications. We look forward to
continuing to develop new applications through our partnership with
Versarien."
Neill Ricketts, CEO of Versarien, commented: "We are very
pleased to announce the acquisition of AAC Cyroma, our largest
acquisition since IPO. The Acquisition is transformational for
Versarien, adding a profitable business to the group and
importantly one that has considerable synergies with our current
activities. It provides a dedicated facility from which to
manufacture graphene enhanced plastics on an industrial scale. With
an established customer base, AAC Cyroma brings a wealth of
knowledge of the plastics market together with existing
infrastructure, making the combined operation the first graphene
enhanced plastic producing factory in existence.
"We are delighted to welcome the management and employees of AAC
Cyroma to Versarien and we look forward to working with them as we
continue to develop the business together."
For further information please contact:
Versarien plc www.versarien.com
Neill Ricketts - Chief Executive +44 (0) 1594 888
Officer 622
Chris Leigh - Chief Financial
Officer
WH Ireland (Nominated Adviser) www.wh-ireland.co.uk
+44 (0) 117 945
John Wakefield / Ed Allsopp 3470
IFC Advisory (Financial PR and www.investor-focus.co.uk
IR)
Tim Metcalfe / Graham Herring
/ Heather Armstrong / Miles +44 (0) 20 3053
Nolan 8671
Notes to Editors:
About Versarien
Versarien plc (AIM:VRS), is an advanced materials group.
Leveraging proprietary technology, the Group creates innovative
engineering solutions for its clients in a diverse range of
industries. Versarien has three subsidiaries:
Versarien Technologies Ltd owns the exclusive rights to a
patent-protected additive process for creating advanced
micro-porous metals targeting the thermal management industry and
manufactures extruded aluminium heat sinks for the electronics and
computing industries. www.versarien-technologies.co.uk
Versarien Advanced Composites Limited has been established in
order to progress the commercial application of graphene-enhanced
composite products.
Total Carbide Ltd, a leading manufacturer in sintered tungsten
carbide for applications in arduous environments such as the oil
and gas industry. www.totalcarbide.com
2-DTech Ltd., which specialises in the supply, characterisation
and early stage development of graphene
products. www.2-dtech.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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October 03, 2016 02:00 ET (06:00 GMT)