The Board of Robotic Technology Systems PLC (“RTS” or “the Group”) is pleased to announce the acquisition of a controlling interest in Hatch Science LLC (“Hatch Science” or “Hatch”).
Hatch Science is a leading developer and manufacturer of scientific instruments for the pharmaceutical and medical industries and is located in Fall River which is approximately 40 miles south of Boston, Massachusetts.
With a successful history of product development, Hatch provides complementary products and skills to RTS Life Science, and simultaneously, strengthens the Group’s presence in its key US market.
RTS Life Science and Hatch have been co-operating in sales and product development for over 12 months.
The unaudited results for Hatch in the year ending 31 December 2009 show turnover of $448k and an operating loss of $798k, including costs for a major product development project, the revenue for which will only be accounted for on completion, expected in 2010. The closing gross assets of the entity were $2,865k.
It is anticipated that Hatch, as a result of the potential synergies, will make a positive contribution to the Group in the 2010 financial year.
The consideration paid for the 65% share in Hatch consists of an initial consideration of $325k payable in cash from the Group’s resources, with an earn out based on payment of 32.5% of the profits generated from Hatch for each of the first three years.
The remaining shareholding is held by the existing management team, who will have an option to sell their 35% holding to the Group at the end of three, four and five years based on the greater of $175k or a percentage of the aggregate net profits generated from Hatch in the preceding two to three years.
Chris Brown, Chairman of RTS said: “The acquisition of Hatch is an important development for RTS as it increases our presence in our core North American market. Hatch has complementary skills and product lines that have been beneficial to both parties over the past twelve months, and once Hatch is fully integrated, is expected to provide a more efficient operation from which to develop our US business”.
Enquiries:
Robotic Technology Systems PLC
Tel: 0161 777 2000
Jon Sharrock, Finance Director
Collins Stewart Europe Limited
Tel: 020 7523 8350
Stewart Wallace
