28 December 2007
Devro plc ("Devro") today announces the sale of BioFilm Limited, a subsidiary company specialising in the manufacture and sale of thin films.
The business has been sold to BioFilm Holdings Limited, a new company backed by Tate & Lyle Ventures LP and Scottish Enterprise's Scottish Venture Fund for a nominal initial consideration, plus a sum in respect of working capital. The Agreement 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's Business Development Director, has today resigned from the Board of Devro and will head up the BioFilm business.
At Devro's interim results, announced in September 2007, Devro's CEO, Peter Page, confirmed that he was conducting an operational review of the business, having assumed the role of CEO in June 2007. The transaction announced today forms part of this review, a summary of which will be presented to analysts and investors 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 the manufacture of specialist thin film products. This investment by Tate & Lyle Ventures LP and Scottish Enterprise's Scottish Venture Fund reflects the significant potential of the business. However, in view of the exciting opportunities in Devro's core casings business, the Board has decided to concentrate its resources in this area.
"Peter Page, our new CEO, will be updating the market on his future operational plans for Devro on January 24, 2008.
"Trevor Morgan has made a significant contribution to Devro since joining the company over twenty five years ago. On behalf of the Board I would like to wish him well in the future with his new venture and to thank Trevor and all his team at BioFilm Limited for their work over the years."