9th Feb 2006 07:01
Biotrace International PLC09 February 2006 For immediate release 9 February 2006 BIOTRACE INTERNATIONAL PLC Disposal of Ruskinn Life Sciences business Biotrace International Plc ("Biotrace", "the Company" or "the Group"), a leadingmanufacturer of industrial microbiology products, announces today that it hasdisposed of the Ruskinn life sciences business via a management buy out ("MBO")for approximately £1 million in cash. Ruskinn Technology Ltd ("Ruskinn") was acquired in 2001 and is involved in thedevelopment of systems to enhance the study of cell interaction under hypoxicand anoxic conditions. The products manufactured and sold to public healthlaboratories, hospitals and medical research institutes include highlyspecialised bench-top workstations used by microbiologists to help diagnose andidentify a range of infections. Over the past eighteen months, Biotrace hasinvested in a new product line for IVF clinics called AC-TIVE, which is due tobe launched this year. The turnover from Ruskinn products during 2005, whichdoes not have a recurring revenue element, was £0.9M with a loss of £0.3M afterdevelopment costs for the new AC-TIVE product. With effect from the 1st February, the MBO team led by Mr Samir Patel, theGroup's former head of Life Sciences will take over the Ruskinn business. Eightmembers of staff associated with the business will transfer to the new company,Ruskinn Life Sciences Ltd ("RLS"), which will remain based in the Bridgend area. The consideration will be satisfied by way of cash amounting to £1.05M as wellas 10% equity and a representation on the Board of RLS. The cash will be paidin two tranches, with a deferred amount payable by the year end. Ian Johnson, Chief Executive Officer of Biotrace, said: "This disposal will allow management to focus on the highly profitableindustrial business with its strong recurring revenues. Our ability tocontinue to grow this core activity will be further enhanced by the availabilityof the cash generated from the deal and the elimination of losses. Retaining an interest in RLS provides shareholders with an opportunity toachieve some upside in the success of AC-TIVE, whilst improving the financialperformance of the Group. I would like to take this opportunity of wishing Samir and the team everysuccess in building on the successes to date." - ENDS - For further information, please contact:Biotrace International Plc Ian Johnson, Chief Executive Officer Tel: +44 (0) 1656 641 400Peter Morgan, Finance Director Buchanan CommunicationsTim Anderson / Mary-Jane Johnson / James Strong Tel: +44 (0)20 7466 5000 Notes to editors: Biotrace International Plc is a leading manufacturer and supplier of industrialmicrobiology and life science products. The Company is organised into threebusiness segments: Industrial, Life Sciences and Defence. The Group'sproprietary technologies are used by most of the world's leading food andbeverage manufacturers who rely on Biotrace products as an essential part oftheir quality control procedures. Industrial customers also includepharmaceutical industries, personal care product manufacturers and environmentalwater markets. The Life Sciences business manufactures highly specialisedworkstations for hospital microbiology laboratories and medical researchorganisations. The Defence segment provides systems and consumables for therapid detection of biological weapons. Formed in 1988 and floated on the London Stock Exchange in 1993, Biotrace hadtotal revenues of £27 million in 2004. The Company is headquartered inBridgend, UK with manufacturing and sales operations worldwide. Visit Biotraceat www.biotrace.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Bank Irel13.375