TIDMBMK
RNS Number : 8934T
Benchmark Holdings PLC
23 July 2020
23 July 2020
Benchmark Holdings
("Benchmark" the "Company" or the "Group")
Sale of its vaccine manufacturing assets to Cell and Gene
Therapy Catapult
Benchmark Holdings, the aquaculture genetics, health and
advanced nutrition company, is pleased to announce that it has
entered into a Business Purchase Agreement ("BPA") relating to the
business and assets comprising its vaccine manufacturing facility
at Braintree, UK to Cell and Gene Therapy Catapult ("CGT Catapult")
for GBP16m payable in cash on completion (the "Sale"). The
consideration is gross of certain exit and transaction costs which
are currently estimated to be c.GBP4m. Completion of the Sale is
subject to closing conditions.
CGT Catapult is a centre of excellence in innovation, with the
core purpose of building a world-leading cell and gene therapy
sector in the UK as a key part of a global industry. CGT Catapult
is supported by Innovate UK, with a mission to drive the growth of
the industry by helping cell and gene therapy organisations across
the world translate early stage research into commercially viable
and investable therapies. CGT Catapult counts over 230 experts,
state of the art development and viral vector laboratories and a
large scale GMP manufacturing centre helping bring cell and gene
therapies to market in the UK and internationally.
Earlier this year Benchmark announced that it had initiated a
review of its vaccine strategy, including manufacturing and
R&D, to determine the best route to deliver a return from its
investment in this business to date.
The Government's strategy to build infrastructure in the UK to
scale the manufacture of vaccines and therapeutics in support of
the response to Covid-19 created a perfect solution to ensure that
our vaccine manufacturing facility is put to best use and to secure
employment for its workforce. Benchmark's Braintree facility and
team have a wide range of GMP (good manufacturing practice)
accredited capabilities including antigen production, formulation,
process development and scale manufacturing and can be rapidly
repurposed to produce human vaccines. The state of the art
facility, which was completed in 2017, employs 75 highly qualified
staff who we are delighted to announce will transfer to CGT
Catapult on completion of the Sale.
The transaction is a significant milestone in Benchmark's
strategy to reduce its cost base and focus on its core areas to
achieve profitability. The proceeds from the Sale do not represent
a profit to Benchmark, but are based on the facility's asset value
and have been agreed to support the Government's vaccine strategy.
The proceeds will further strengthen the Group's financial position
and liquidity, with total potential consideration from recent
disposals, including this Sale, of c.GBP42m.
Trond Williksen, CEO, commented:
"I am very pleased to announce this transaction which is another
significant step forward in our strategy of becoming a streamlined,
profitable business focused on our key areas of competency.
"Benchmark is also delighted that the timing and conclusion of
our vaccine strategy review coincides with the need to scale
capabilities to manufacture human vaccines in response to Covid-19
and that the talented team at Benchmark will become part of this
critical effort."
Peter George, Chairman, commented:
"I am extremely pleased that Benchmark has been able to be part
of the UK solution for vaccine manufacturing. We were in the
process of evaluating this sector when Covid-19 broke, and
following communications with Sir Patrick Vallance, the Government
Vaccine Taskforce, and with special thanks to the hard work of Kate
Bingham and her team, this is the outcome. I am delighted that we
have a long-term solution for the workforce, which has always been
our desired outcome. I would like to highlight the Government's
foresight in identifying the possibilities here and moving quickly
on this decision.
"I am proud to say that Benchmark is exiting the Covid-19
lockdown period in a stronger financial position than we entered,
due to our focus on completing our well developed restructuring
programme."
Matthew Durdy, CEO Cell and Gene Therapy Catapult said:
"This commitment from the Government through the BEIS Vaccines
Taskforce will enable continued growth and productivity in the cell
and gene therapy sector, as well as providing vital resource for
vaccine manufacturing and economic recovery from the Covid-19
pandemic.
"We are delighted to welcome the team from Benchmark to the
Catapult family and be able to deploy the specialist capabilities
of the Cell and Gene Therapy Catapult in such an important
initiative. Accelerating the availability of Covid-19 vaccines,
keeping skills and employment, and facilitating growth of the
advanced medicines industry will make a valuable contribution to
the recovery of the economy."
For further information, please contact:
Benchmark Holdings plc benchmark@mphc.com
Trond Williksen, CEO
Septima Maguire, CFO
Ivonne Cantu, Investor Relations
Numis (Broker and NOMAD) Tel: 020 7260 1000
James Black, Freddie Barnfield, Duncan
Monteith
MHP Communications Tel: 07551 170 451 / 07875
744 070
Reg Hoare, Alistair de Kare-Silver, Alice McLaren benchmark@mphc.com
About Benchmark
Benchmark's mission is to enable aquaculture producers to
improve their sustainability and profitability.
We bring together biology and technology, to develop innovative
products which improve yield, quality and animal health and welfare
for our customers. We do this by improving the genetic make-up,
health and nutrition of their stock - from broodstock and hatchery
through to nursery and grow out.
Benchmark has a broad portfolio of products and solutions,
including salmon eggs, live feed (Artemia), diets and probiotics
and sea lice treatments. Find out more at www.benchmarkplc.com
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END
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