Imperial Innovations Group (AIM: IVO) said its partner company Membrane Extraction Technology (MET), in which it holds a 20 percent stake, was sold to to Evonik Industries AG, a privately-owned German chemical manufacturer, for £4.5m in cash. Imperial Innovations received a cash payment of 903,976, resulting in a net payment of £653,409 after deducting the Imperial College's share of the proceeds.
The synergies between MET and Evonik make a compelling case for this excellent deal, MET CEO Professor Andrew Livingston said.
MET was founded in 1995 by Livingston in association with Imperial Innovation. The business specialises in chemical separation, and its international operation supplies the pharmaceutical and fine chemicals industries. Imperial Innovations' 20% equity stake resulted from its founding stake when it established the company in 1995 and a 50,000 investment in 2008. Oxford Technology Venture Capital Trust and Citigroup Capital Ventures also had an equity stake in the business.
In its last financial year ended 31 July 2009, MET reported a profit of £11,102.
"MET is another good example of a trade sale of a business that has been built with a relatively modest amount of investment and highlights the success of our investment strategy, involving regular exits by our maturing companies, Imperial Innovation CEO Susan Searle commented.
In addition to the net proceeds, the company will also return its carrying value, in relation to MET, for reinvestment purposes. As at 31 July 2009, METs carrying value was £155,000.
http://www.proactiveinvestors.co.uk/companies/news/13920/imperial-innovations-partner-met-sold-to-evonik-industries-for-45m-13920.html
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