Versarien plc, the advanced materials group, is pleased to announce 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 £1.395 million plus the assumption of approximately £264,000 debt and £266,000 in new Versarien shares ("the Consideration Shares"). Up to an additional £200,000 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 £4.27 million with a profit before tax of £166,000 and EBITDA of £375,000.  Net assets at 31 December 2015 were £883,000.

 

Source : versarien.com

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