Byotrol Plc Acquires Winch Pharma Consumer Healthcare Ltd
Byotrol plc, the specialist anti-microbial technology company, is pleased to announce the purchase of the entire share capital of Winch Pharma Consumer Healthcare Ltd for an initial cash consideration of £70k. Deferred consideration of up to £44k will be payable in cash in 2018, subject to contract renewal by its key customer, the NHS Business Services Authority.
Winch Pharma has one key asset, being a formal one year (extendable to three) contract to supply the NHSSC with non-alcohol hand sanitising products, plus certain other surface disinfection products, all under the Athenian brand. Prior to the acquisition, Byotrol was supplying Winch Pharma with all its hand sanitising products, which were repackaged under the Athenian brand.
Winch Pharma's revenue is predominantly from the NHSSC, although it also sells into other health and elderly-care providers. The acquisition will allow Byotrol to benefit directly from Winch Pharma's recent growth, and secure 100% of the resulting margin, all from within existing Byotrol resources, and without having to engage in a lengthy process to become a new, formal NHSSC supplier.
No other assets (or liabilities) have been acquired as part of the acquisition, except for a 7 year exclusive license over the Athenian brand in healthcare in the UK. The Company expects to transition Athenian to Byotrol branding, dependent on discussions with the NHS Supply Chain authorities.
The Directors do not expect the acquisition to impact the Company's earnings in the current financial year, to 31 March 2017. We do however expect this transaction to materially boost hand hygiene sales in the new financial year, particularly from sales into the NHSSC of our (previously announced) newly-patented formulation.
David Traynor, Chief Executive of Byotrol plc comments:
"We have had a good relationship with the owners of Winch Pharma as suppliers to them of small quantities of hand hygiene products.
This transaction allows us instant and direct access to the growth in non-alcohol personal care products in the healthcare market and beyond. It also ensures that existing customers of Winch Pharma will see continuity of supply and a pipeline of high-performance, innovative new products to fit within the new biocide regulatory landscape."