Antibacterial firm Addmaster changes hands for £33m
A leading supplier of antibacterial additives is setting its sights on major international growth after it was bought by Polygiene in a deal worth £33 million of cash and shares in the Nasdaq-listed business.
Stafford firm Addmaster, which supplies performance-enhancing additives for the plastic, paper, textiles, paints and coatings industry, will become an instrumental part of the Swedish-owned company.
The acquisition brings together the company's expertise in antimicrobial technologies on hard surfaces with the parent group’s long-standing reputation in odour control and antiviral solutions for textiles.
The new owners have extended the lease on the Addmaster head office at Staffordshire Technology Park, signalling the intent to invest in the UK team so that it can play a driving force in the global growth of the enlarged group.
Founder Paul Morris and managing director Sandrine Garnier will continue to lead the company going forward, as it aims to build on the Covid-19-fuelled demand for hygienic products.
“This is a fantastic deal for our business and gives us the financial backing and global resources we need to maximise the potential of our products, including the world-leading antimicrobial protection offered by Biomaster,” explained Mr Morris, who started Addmaster 20 years ago after borrowing £5,000 off his grandmother.
“We first started talking in 2005 when both companies were new entrants in the antimicrobial market and the relationship has strengthened from there, with our additives used by Polygiene for more than a decade now.”
He continued: “The global demand for antimicrobial solutions has been accelerated by the pandemic and we felt the time was right to come together as one organisation so that we can make the most of the worldwide desire for products and textiles that offer the best hygienic protection to the user.
“In addition to the obvious financial benefits, the deal gives us additional reach and the opportunity for our existing client base to make the most of experts on both polymer and textile applications, receiving industry-leading technical support in the process.”
Increased sales
Addmaster, which won its third Queen’s Award in 2020, has been operational throughout Covid-19, increasing annual sales by more than 60 per cent in the last 12 months as existing and new clients look to explore new solutions that offer the user greater hygienic protection.
Biomaster in particular has been in high demand and has been adopted by a diverse cross section of leading companies, from toy makers to paper producers, to shopping trolleys and touch points in supermarkets to the aviation sector where deals have been signed on everything from airport trays and aircraft interiors – all designed to prevent bacteria and viruses growing.
In a recent development, the technology has also completed extensive testing and has been found to be effective on both porous and non-porous substrates against SARS-CoV-2, the virus that causes Covid-19.
This means that Biomaster can give up to 99 per cent protection just four hours after it has been added to products, preventing any bacteria or virus growing on everyday items.
Mr Morris, who was awarded an MBE in the recent New Year’s Honours, continued: “The acquisition has come at the end of one of the most demanding, yet ultimately successful years and puts us in an excellent position to increase sales both at home and across the world.
“Whilst Brexit was talked about, there was never any question that it would stop the deal from taking place and, if anything, it is a massive advantage for both companies to have footprints in the UK and the EU.”
Ulrika Bjork, chief executive of Polygiene, added her support: “The transaction is a milestone in our 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.”
Addmaster now becomes part of the Polygiene company portfolio and joins the business on the Nasdaq First North Growth Market.
The sale was supported by Midlands law firm Shakespeare Martineau and Bracebridge Corporate Finance.
Head of corporate Adam McGiveron and acquisitions specialist Emma Bryant at Shakespeare Martineau, helped Addmaster with the deal – advising on the sale contract.
Mr McGiveron said: “We are delighted to have worked with Addmaster and its shareholders to achieve an outstanding result for the business. The deal is a superb example of a Midlands business being advised by Midlands advisors on an international transaction.”
