28th Dec 2007 12:23
Devro PLC28 December 2007 28 December 2007 Sale of BioFilm Limited Devro plc ("Devro") today announces the sale of BioFilm Limited, a subsidiarycompany specialising in the manufacture and sale of thin films. The business has been sold to BioFilm Holdings Limited, a new company backed byTate & Lyle Ventures LP and Scottish Enterprise's Scottish Venture Fund for anominal initial consideration, plus a sum in respect of working capital. TheAgreement provides for a further potential payment to Devro (up to £3.6 million)in the event of a subsequent sale of the business. The new owners plan to invest £3 million in the business. Trevor Morgan, Devro'sBusiness Development Director, has today resigned from the Board of Devro andwill head up the BioFilm business. At Devro's interim results, announced in September 2007, Devro's CEO, PeterPage, confirmed that he was conducting an operational review of the business,having assumed the role of CEO in June 2007. The transaction announced todayforms part of this review, a summary of which will be presented to analysts andinvestors on January 24, 2008. Commenting on today's announcement, Devro's Chairman, Pat Barrett, OBE, said: "Since 2003, BioFilm has successfully pioneered new technology in themanufacture of specialist thin film products. This investment by Tate & LyleVentures LP and Scottish Enterprise's Scottish Venture Fund reflects thesignificant potential of the business. However, in view of the excitingopportunities in Devro's core casings business, the Board has decided toconcentrate its resources in this area. "Peter Page, our new CEO, will be updating the market on his future operationalplans for Devro on January 24, 2008. "Trevor Morgan has made a significant contribution to Devro since joining thecompany over twenty five years ago. On behalf of the Board I would like to wishhim well in the future with his new venture and to thank Trevor and all his teamat BioFilm Limited for their work over the years." Enquiries: Mark Antelme Brunswick 0207 404 5959 Notes to editors: Devro (www.devro.plc.uk) is the world's leading manufacturer of collagenproducts for the food industry. In addition, the company manufactures a range ofplastic casings, supplies customers in the food industry with a range ofdistributed products and also supplies pure collagen raw materials for use inthe healthcare industry. With manufacturing facilities in three continents and2006 revenue in excess of £150m, Devro products are sold worldwide. Tate & Lyle Ventures (www.tateandlyleventures.com) is a £25m venture capitalfund focused on investing in high growth companies in the fields of renewableingredients, food technologies, renewable resources such as biomaterials andbiofuels and industrial processing technologies. Tate & Lyle, the fund'sprinciple investor is one of the world's leading renewable ingredients companiesfocused on innovation and product development in these sectors. The fund isindependently managed by Simon Barnes and David Atkinson of Circadia Ventures,an FSA authorised and regulated firm based in London. The Scottish Venture Fund provides investments of up to £2m per transaction inpartnership with the private sector on at least a matched funding basis insyndicated transactions, typically, between £2m and £10m. Further information onScottish Enterprise investments is available at www.scottish-enterprise.com/equity. Scottish Enterprise is the main economic development agency for Scotlandcovering 93% of the population from Grampian to the Borders. The ScottishEnterprise Network consists of Scottish Enterprise and 12 Local EnterpriseCompanies. Working in partnership with the private and public sectors theNetwork aims to build more and better businesses, to develop the skills andknowledge of Scottish people, and to encourage innovation to make Scottishbusiness internationally competitive. Further information on Scottish Enterpriseis available at www.scottish-enterprise.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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