Byotrol buys out consumer products JV partner

HYGIENE products innovator Byotrol is  to buy out its partner in its consumer products joint venture Byotrol Consumer Products in an all share deal.

The AIM-listed Daresbury company is paying ?What If! Innovation Capital, an investment agent that takes strategic stakes in consumer products businesses, 33.74 million shares for its 50% stake in BCP.

Based on Byotrol’s share price on Wednesday of 6.42p  BCP is valued at £4.3m.

The company says it believes the combination of Byotrol Consumer Product’s marketing strategy and its own product and technical know-how will create a more efficient and focused entity “enabling optimised relationships with partners who increasingly work in both consumer and business to business markets.”

Byotrol Consumer Products was established in 2007 and was responsible for developing commercial relationships and product sales in the global consumer market.

For the year ended 31 March 2013 the unaudited statutory accounts of Byotrol Consumer Products showed revenues of £858,000 and a profit before tax of £134,000.  The consolidation of the operations of BCP is expected to be immediately earnings enhancing for Byotrol.

Ralph Kugler, chairman of Byotrol, said the deal was an “important step”.
“The combination of the two companies will increase our sales opportunities in consumer and business markets at a lower overall cost.  Byotrol is committed to building on BCP’s achievements to maximise value for our shareholders.”

Chief executive Gary Millar added: “The full ownership of BCP gives Byotrol the opportunity to streamline its sales focus whilst benefitting from the additional margin contribution resulting from a consumer product sales approach.

“We continue to see considerable opportunity for the Byotrol technology in consumer products markets and believe that better outcomes will be achieved with BCP more tightly integrated into the company. Optimising the combined skill sets of both businesses will lead to significant market opportunities.”

David Traynor, managing director of BCP and an investor in ?What If! added:”Having worked closely with Byotrol PLC for over five years, we can see that the combination of the two businesses is based on sound strategic logic and playing on our combined strengths will enhance the total organisation.”