Polygiene, a front-runner in odor control technologies, has entered into a conditional agreement on gaining of privately owned Addmaster Holdings Ltd, a UK-based global supplier of antibacterial additives for hard surfaces.
Addmaster supplies antimicrobial additives to Polygiene.
The purchase price, on a cash and debt free basis, amounts to in total approximately SEK 374 million, where approximately SEK 249 million is paid in cash and approximately SEK 125 million is paid through 4,564,174 newly issued shares in Polygiene.
The cash payment is intended to be financed through a directed cash new issue in Polygiene. The completion of the acquisition of Addmaster is conditional on the total issue proceeds from the directed issue amounting to at least SEK 280 million and that both the directed issue and the issue of the consideration shares are approved at an extraordinary shareholders’ meeting.
Addmaster is mainly active in hard surfaces, which complements Polygiene, that is active in textiles and soft surfaces, well.
Addmaster believes that there are considerable interactions within the companies’ customer bases because Addmaster’s customers demand soft surfaces and Polygiene’s customers demand hard surfaces.
Polygiene evaluations that there is a potential for total synergies of a total of around SEK 61 million in enlarged EBIT during 2021-2023, of which around SEK 55 million stems from extra sales and approximately SEK 6 million stems from cost savings in logistics and administration.
Paul Morris, founder of Addmaster, and Sandrine Garnier, managing director in Addmaster, will continue to be active in Addmaster following the acquisition.
“The transaction is a milestone in Polygiene’s history and from a strategic perspective very logical given the great synergies that exist between the companies. Through the acquisition, we can strengthen our position in the market with a much broader offering, which will accelerate our already strong growth,” Ulrika Björk, CEO of Polygiene.