Versarien completes largest post-IPO acquisition

Advanced materials group #Versarien Plc (LON:VRS) has acquired specialist plastics manufacturing firm AAC #Cryoma Limited as it continues to scale-up its #graphene production operations. Cheltenham-based Versarien said it will use AAC Cryoma’s plant and equipment to produce graphene-enhanced products, making it the “the first dedicated graphene-enhanced manufactory in the world”. The deal will see Versarien pay £1.395mln upfront in cash, with the company also assuming around £264,000 in debt and issuing £266,000 in new Versarien shares. A further £200,000 will be paid at a later subject to AAC Cryoma hitting certain pre-tax profit targets over the next two years. “The acquisition is transformational for Versarien, adding a profitable business to the group and importantly one that has considerable synergies with our current activities,” said chief executive Neil Ricketts. “It provides a dedicated facility from which to manufacture graphene enhanced plastics on an industrial scale.” AAC Cryoma serves a range of sectors, including automotive and fast moving consumer goods. In its last financial year, the Banbury-based company posted a profit before tax of £166,000 on sales of £4.27mln, while net assets totalled £883,000. Ricketts had previously said that a plastics producer would be “an ideal target for our graphene business”. Experts claim that graphene is 100 times stronger than steel despite being nearly transparent and it is also an efficient conductor of both heat and electric.
http://www.proactiveinvestors.co.uk/companies/news/166815/versarien-completes-largest-post-ipo-acquisition-166815.html