Xeros Technology Group plc Acquisition (8459J)
July 03 2017 - 2:00AM
UK Regulatory
TIDMXSG
RNS Number : 8459J
Xeros Technology Group plc
03 July 2017
3 July 2017
Xeros Technology Group plc
Xeros accelerates entry into personal protection equipment
cleaning market with the acquisition of US cleaning business
Xeros Technology Group plc (AIM: XSG, 'Xeros', 'the Group'), the
developer and provider of polymer based technologies with multiple
commercial applications, has agreed to acquire MarKen PPE
Restoration ('MarKen'), which provides personal protection
equipment ('PPE'), cleaning, inspection and repair services.
MarKen will be acquired for an initial cash consideration of
US$750,000 with a further contingent cash consideration of up to
US$250,000, subject to certain growth targets. The initial
consideration has been funded from the Group's existing cash
resources.
For the year ended 30 April 2017, MarKen generated revenues of
US$686,000, generating an EBITDA loss of US$72,000. As at 30 April
2017 gross assets were US$89,000. Management believe that as a
result of Xeros' ownership the MarKen business will be profitable
going forwards.
The acquisition follows the launch of Xeros' US
regulator-approved cleaning solution for the firefighting PPE
market in February 2017. The Xeros solution is highly effective at
removing harmful contaminants whilst also extending the life of
expensive PPE garments.
MarKen is a leading independent service provider that
exclusively uses Xeros' cleaning solution, serving some 25
municipal and military fire departments across the US from its
facility in North Las Vegas. The acquisition provides Xeros with
rapid, low cost access to the large and highly specialised
high-performance workwear cleaning market.
The acquisition will lead to the creation of a new business unit
within the Cleaning Technologies division - "Xeros High Performance
Workwear"- providing an optimal structure for future development
and growth.
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
MarKen. This is driven by increased understanding of the health
risks associated with soiled and contaminated personal protection
equipment 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:
"This acquisition provides Xeros with a platform from which to
accelerate significantly our penetration of the high-performance
workwear market. With more than 58,000 fire stations across the USA
alone, this is a substantial market where the benefits of our
unique cleaning and decontamination solutions can create
significant value.
"The profound expertise we are acquiring and the increased
market access we now have will enable us to grow this business very
rapidly."
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 / Harry Nicholas
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
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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