Proventec buys Dutch group
STEAM cleaning group Proventec today announced the acquisition of a 60% stake in a Dutch group which specialises in industrial cleaning using dry ice technology.
The move, which is being paid for with cash and through the issue of 224,506 new shares, sees Liverpool-based Proventec taking the majority stake in CryoJet Industrial Services which supplies cryogenic cleaning equipment which uses low temperature cryogene CO2 dry ice to clean industrial surfaces.
Cryojet, which is expected to have turnover of 1.5m euros (£1.16m) in the year to December 31, currently only operates in Holland and Proventec aims to offer its specialist cleaning services internationally.
The Dutch firm already boasts customers including Royal Dutch Shell, ExxonMobil, Q8, E-On, Essent, AkzoNobel and Quality Bakers.
Cryogenic cleaning is a completely dry and non-abrasive process that does not leave residue, making it particularly valuable in the food, petrochemical and energy industries.
The remaining 40% stake in CryoJet will be owned by its founder and chief executive Harry Leenman who will remain as managing director following the acquisition.
David Chestnutt, chief executive of Proventec, said: “We are creating two distinct but complementary divisions within the company; Proventec Healthcare and Proventec Industrial. With our controlling stake in CryoJet we will be able to access a proprietary, successful and profitable new technology and an impressive new blue-chip industrial customer base.
“This provides an exciting addition to Proventec’s portfolio of technologies and services. For CryoJet the combination will provide a broad geographic network as well as additional resources. Moreover, with Mr Leenman’s experience and background, we continue to strengthen our own management team for the benefit of our shareholders.”
Proventec was formed by the reverse takeover of Magma, a fire retardant coatings business and OspreyDeepClean, a specialist steam cleaning business, by Flintstone Technologies in August 2005.
It is listed on the London Stock Exchange and the Paris-based Alternext exchange.
