EPL snapped up by Haydale
Haydale Graphene Industries has entered an agreement to acquire EPL, a Loughborough company working on the commercialisation of advanced polymer materials.
The Carmarthenshire-based business will pay more than £1.3m for EPL, comprising £400,000 in cash, £187,691 in director loans and up to £792,500 payable in either cash and/or shares based on earnings targets to June 2016.
The group said the deal was a "major step" in capitalising on its technology which allows it to add graphene and other nano-fillers into composites.
"This acquisition is a major step forward for us because the rapidly growing composites industry is known for the early adoption of new technologies and is one of the major markets for embracing disruptive technology and introducing innovative new materials," said Haydale chief executive Ray Gibbs.
Silicon Valley Bank will provide Haydale with a three-year £500,000 loan facility to cover the initial consideration. The group will also place a further 11.4 million shares on AIM later this week (6 November 2014), at a price of 2p each.
EPL employs 17 scientists and technicians and works with National Grid, SSE, Eirgrid, Chevron, Anglian Water, Severn Trent Water and Yorkshire Water.
In the year to 31 March 2014, the company reported pre-tax profit of £26,000 on sales of £815,000.