30th Nov 2018 12:55
LONDON (Alliance News) - British decontamination solutions provider Bioquell PLC on Friday said it has agreed to a GBP140.5 million takeover offer from Ecolab US 2 Inc, part of water, hygiene and energy technology giant Ecolab Inc.
Bioquell shares spiked following the news, trading 37% higher at 575.85 pence each, valuing the Hampshire-based firm at GBP130.2 million. Ecolab's market cap by contrast is about USD45.75 billion.
Under the terms of the offer, Bioquell shareholders will receive 590 pence per share in cash. The price represents a premium of 40% to Bioquell's closing price of 420p on Thursday.
Bioquell, which was founded in 1925, provides specialist hydrogen peroxide vapour bio-decontamination equipment, modular isolators and other services for the life sciences and healthcare sectors. In 2017, it generated revenue of GBP29.2 million and pretax profit of GBP3.3 million.
Ecolab, in which Microsoft founder Bill Gates holds a 12% stake, is part of the S&P 500 index. The St Paul, Minnesota-based company says it makes products to keep the foodservice, healthcare, industrial, and oil and gas markets "clean and safe". In 2017, it generated revenue of USD13.84 billion and net income of USD1.51 billion.
Ecolab shares closed 1.4% higher at USD158.39 in New York on Thursday.
Ecolab Executive Vice President Elizabeth Simermeyer said: "Bioquell's bio-decontamination solutions complement Ecolab's daily cleaning and disinfection offerings for cleanrooms and other areas that require an aseptic environment."
Ecolab said that the acquisition will provide an "attractive extension of its value proposition to its customers" helping it achieve its aim of making pharmaceutical and healthcare facilities "cleaner, safer and healthier" for patients and workers.
Bioquell said that its directors consider the offer to be "fair and reasonable" and are therefore unanimously recommending shareholders to approve it.
Bioquell Chairman Ian Johnson said: "As part of Ecolab, Bioquell will be able to drive faster strategic growth in both life sciences and healthcare markets leveraging Ecolab's extensive global footprint."
"The Bioquell directors believe the strategic fit is extremely strong and that the combination offers employees and customers a highly desirable opportunity to continue Bioquell's successful tradition," Johnson added.
So far, Ecolab has received irrevocable undertakings or letters of intent in respect of 12.3 million Bioquell shares, representing 55.10% of the company's issued share capital. The deal, if approved by shareholders and after satisfaction of regulatory clearance, is expected to conclude in the first quarter of 2019.
After completion of the deal, Bioquell shares will be delisted from the London Stock Exchange.