Versarien takes over plastics business in £1.4 million deal
6th October 2016
County-based Versarien, the advanced materials group, has acquired AAC Cyroma, a specialist plastics manufacturing business serving a range of sectors including automotive and fast moving consumer goods.
ACC Cyroma was established in 2002 and operates from a 45,000 square foot facility in Banbury, Oxfordshire.
Versarien, which has its headquarters in Cheltenham, has led the way in the development of graphene-related technologies, pioneering production of materials that have exceptional qualities and can withstand the most extreme conditions.
Using Versarien's existing graphene manufacturing capabilities, in combination with AAC Cyroma's knowledge, plant and equipment, the acquisition will provide the Group with an ability to produce graphene enhanced products for an established customer base, both domestic and international.
Versarien believes this will be the first dedicated graphene enhanced plastics manufacturing factory in the world.
AAC Cyroma is being acquired for an initial cash consideration of £1.395 million plus the assumption of approximately £264,000 debt and £266,000 in new Versarien shares. Up to an additional £200,000 of deferred consideration will be payable based upon AAC Cyroma achieving pre-tax profit targets for the years ending 31 December 2017 and 2018.
James Baker, Graphene Business Director at the National Graphene Institute (NGI) at The University of Manchester, commented: "Graphene, first isolated in 2004 in Manchester, is already being rapidly developed into a range of products and applications that are starting to appear in the marketplace.
"Whilst initially these products involve the addition of a graphene type material to improve performance, we are now starting to see real improvements in performance as quality and knowledge of the material improves.
Through partnership and collaboration with industry, the National Graphene Institute is looking to accelerate the adoption of graphene-based products and applications. We look forward to continuing to develop new applications through our partnership with Versarien."
Neill Ricketts, CEO of Versarien (pictured) said: "We are very pleased to announce the acquisition of AAC Cyroma, our largest acquisition since IPO.
"The Acquisition is transformational for Versarien, adding a profitable business to the group and importantly one that has considerable synergies with our current activities. It provides a dedicated facility from which to manufacture graphene enhanced plastics on an industrial scale.
"With an established customer base, AAC Cyroma brings a wealth of knowledge of the plastics market together with existing infrastructure, making the combined operation the first graphene enhanced plastic producing factory in existence.
"We are delighted to welcome the management and employees of AAC Cyroma to Versarien and we look forward to working with them as we continue to develop the business together."
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