19th Sep 2016 07:59
LONDON (Alliance News) - Specialty chemicals company Revolymer PLC said it agreed to sell its nicotine gum business to Danish medicated chewing gum company Alkalon last Friday, for GBP900,000.
Revolymer will retain a 15% stake in the business, which may increase to 20% if certain commercial milestones are met within nine months of completion.
According to Revolymer, Alkalon has EU regulatory approval for its products and an established European customer base, which complements Revolymer's Canadian customer base. The business combination offers the potential to grow the combined business in its existing territories as well as to expand in additional territories, benefiting from economies of scale in manufacturing and marketing.
At completion, Revolymer will have the right to appoint a director to the board of the combined business, which will continue under the Alkalon name.
Revolymer is also selling additional assets to Alkalon relating to the nicotine gum business worth GBP500,000.
Revolymer said the disposal forms part of its strategy to focus on its target markets of homecare, industrial, personal care and consumer healthcare.
"This transaction marks further progress in the execution of Revolymer's strategy, focusing its business on becoming a leader in functional polymers that manage the interface between different surfaces and phases to improve the safety, performance or sustainability of its customers' products," Chief Executive Kevin Matthews said in a statement.
Shares in Revolymer were untraded on Monday, last quoted at 36.00 pence.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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