LONDON (ShareCast) - (ShareCast News) - Anti-microbial technology company Byotrol has bought Winch Pharma Consumer Healthcare for up to £114,000 as part of a move to consolidate its supply chain.
The AIM-listed company paid £70,000 up front and will pay up to £44,00 in 2018, subject to contract renewal by Winch Pharma's major customer, the NHS Business Services Authority.

Winch Pharma's revenue predominantly comes from the NHS BSA and the acquisition will allow Byotrol to benefit from Winch Pharma's recent growth without having to become a new supplier for NHS BSA.

Before to the acquisition, Byotrol was supplying Winch Pharma with hand sanitising products, which were repackaged under the Athenian brand which were then supplied to NHS BSA, under a one-year contract, which can be extended to three years.

Subsequently, Byotrol has also bought a seven-year exclusive license over the Athenian brand in healthcare in the UK and is to change from Athenian to Byotrol branding, depending on discussions with NHS BSA.

The acquisition is not expected to impact earnings for this financial year ended March, but is anticipated to materially boost hand hygiene sales in the new financial year.

Byotrol chief executive David Traynor said: "This transaction allows us instant and direct access to the growth in non-alcohol personal care products in the healthcare market and beyond.

"It also ensures that existing customers of Winch Pharma will see continuity of supply and a pipeline of high-performance, innovative new products to fit within the new biocide regulatory landscape."

Shares in Byotrol were up 2.7% to 4.75p at 1052 GMT.

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