BioFilm Ltd (United Kingdom) - Dec 2007

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01 December 2007

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Tate & Lyle Ventures, an independent venture capital fund backed by Tate & Lyle Plc, and the Scottish Enterprise-managed Scottish Venture Fund have completed the acquisition of BioFilm Ltd, a manufacturer of edible films, from Devro Plc for an undisclosed sum. The deal will see the two firms take identical stakes in the business representing a combined majority interest, with the balance of the equity being provided by management. The investors were able to secure a period of exclusivity to complete the transaction due to an existing relationship between Tate & Lyle managing partner David Atkinson and BioFilm CEO Trevor Morgan. They were attracted to the business primarily due to the fact that it is the only fully-integrated manufacturer in Western Europe of edible films that carry active ingredients, the market for which is long established in North America and is beginning to emerge in Europe. The new owners are planning to invest £3m to grow the business, concentrating on re-focusing on new sectors such as medical devices and personal care. The deal was finalised on 28 December 2007 and took just six weeks to complete.

Company

Hamilton-based BioFilm develops and manufactures fast dissolving films used for food supplements and medical applications. The benefits of these products, which include their ease of use, cost effectiveness and, in some cases, increased absorption through the buccal membrane (inside cheek), has recently led to their increasing use as medical devices, such as anti-snoring strips, and as a delivery system for a range of active ingredients, including breath fresheners, nutraceuticals, cosmeceuticals and drugs. The company was founded in 2003 and employs 28 staff.

People

David Atkinson and Simon Barnes worked on the transaction for Tate & Lyle Ventures, with Atkinson joining the BioFilm board, while Jonathan Lloyd-Hirst led the investment for Scottish Enterprise. Trevor Morgan represented the company.

Advisers

Equity - Bird & Bird, Angus Miln (Legal)Equity - Burness Solicitors , (Legal)Management - John Jackson & Dick, Euan Stirrat (Legal)Vendor - MacRoberts, Ian Dickson (Legal)

Sourced from: UK & Ireland unquote" 361 (Jan 2008)