Proventec acquires Contico Manufacturing
As revealed in the leader, Proventec has purchased a majority share in Contico Manufacturing. Here follow the announcements made to the companies' staff and the press.
Thomas Stücken, CCO Proventec:
"I am very pleased to announce that Proventec has acquired Contico Manufacturing via the successful lead of a management buy-out.
"Proventec now owns an 80% equity stake in Contico Manufacturing, a manufacturer and distributor of cleaning and hygiene products. Contico is based in Redruth, Cornwall (UK), employing 45 staff, with product sales in the UK and exports across Europe, the Middle East and Far East. In 2006 it reported annualised turnover of £8.8 million and the acquisition of this significant, controlling stake in Contico is expected to substantially increase our company's revenue and profitability.
"This acquisition of a controlling stake in Contico will provide further important routes to market for Proventec's existing lines and new innovations, specifically OspreyDeepclean steam technology. It will also provide the necessary critical mass to service and offer cross-selling opportunities to key accounts and offer significant benefits in terms of potential synergies across sales & marketing and logistics. This will make the new enhanced group a powerful force in the markets in which we operate.
"Contico has an established and experienced management team that has been in place for over 12 years and we are extremely excited about working with them in the future."
Vernon Holmes, Managing Director of CML, added: "I am delighted that we have been successful in the management buy-out to purchase Contico Manufacturing Ltd from Katy Industries Inc, Arlington, USA, with the support of Proventec plc, who will now own an 80% equity stake in Contico. This acquisition will now give Contico the golden opportunity to expand and develop the business further, without the previous USA restraints and pressures. The business will still operate from Redruth and with our existing, established & experienced management team and workforce in situ, we should continue to be a most powerful force within the market place."
Proventec plc manages a complementary portfolio of integrated businesses that specialize in hygienic solutions and preventative coatings technologies and is a provider of specialist steam cleaning equipment.
Headquartered in Liverpool, the Company operates in global markets, pioneering developments within the healthcare, food manufacturing, hospitality industries, transportation, construction and other sectors.
The Company's hygienic solutions division includes OspreyDeepclean, the world's leading provider of chemical-free specialist dry saturated steam cleaning technology.
Proventec has an active R & D programme for the development and improvement of its technologies and applications, and co-operates with companies and technical institutes across Italy, Germany, Holland and the UK.