LONDON (ShareCast) - (ShareCast News) - Polymer-based technology developer and supplier Xeros Technology Group announced on Monday that it had agreed to acquire personal protection equipment, cleaning, inspection and repair services provider MarKen PPE Restoration.
The AIM-traded company said MarKen would be acquired for an initial cash consideration of $0.75m, with a further contingent cash consideration of up to $0.25m, subject to certain growth targets.

It said the initial consideration had been funded from the group's existing cash resources.

For the year ended 30 April, MarKen generated revenues of $0.69, and an EBITDA loss of $0.07m.

As at 30 April, gross assets were $0.09m.

Xeros' management said it believed that, as a result of its ownership, the MarKen business would be profitable going forwards.

The acquisition followed the launch of Xeros' US regulator-approved cleaning solution for the firefighting PPE market in February 2017.

Xeros said its solution was "highly effective" at removing harmful contaminants, whilst also extending the life of expensive PPE garments.

MarKen was described by the Xeros board as a "leading independent service provider" that exclusively used Xeros' cleaning solution, serving some 25 municipal and military fire departments across the US from its facility in North Las Vegas.

The acquisition provided Xeros with "rapid, low cost access" to the large and highly specialised high-performance workwear cleaning market, it added.

It said the acquisition would lead to the creation of a new business unit within the cleaning technologies division , dubbed 'Xeros High Performance Workwear', providing an "optimal structure" for future development and growth.

"This acquisition provides Xeros with a platform from which to accelerate significantly our penetration of the high-performance workwear market," said chief executive Mark Nichols.

"With more than 58,000 fire stations across the US alone, this is a substantial market where the benefits of our unique cleaning and decontamination solutions can create significant value.

"The profound expertise we are acquiring and the increased market access we now have will enable us to grow this business very rapidly."

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