1 May 2018 AIM: AXS
Euronext Amsterdam: AXS
ACCSYS TECHNOLOGIES PLC
Purchase of Arnhem land and buildings
Accsys, the chemical technology group, announces that it has agreed to purchase the land and buildings associated with its Accoya® plant and logistics centre in Arnhem from its current landlord, Bruil, having retained a first right to buy back the property from Bruil in the event that a third party offered to purchase it, which has now occurred. The transaction remains conditional upon Accsys finalising finance terms to fund the purchase price of €23 million (plus VAT).
Accsys is currently in discussions in this respect with a third party bank and will provide a further update in due course. Whilst the property has now been transferred to Accsys, should satisfactory financing terms not be agreed, the transaction will be unwound, the property transferred back to Bruil and the previous lease arrangements will re-commence, all without liability to Accsys.
The acquisition reflects Accsys's ambition to improve our overall financing arrangements. The financing terms, if agreed, are expected to result in a comparable financial commitment to the lease, although the asset and corresponding liability will increase given part of the existing lease arrangement was recognised as an operating lease.
It is expected to result in lower overall income statement charge over the next 20 years, reflecting the ownership of the freehold. Ownership of the land is also expected to provide greater flexibility in respect of the use of the land as well as any potential value appreciation.
ACCSYS TECHNOLOGIES PLC
Koop van grond en gebouw in Arnhem
Accsys, het chemische technologie bedrijf heeft met Bruil, de huidige verhuurder, overeenstemming bereikt om de grond en het gebouw gerelateerd aan de Accoya fabriek en logistiek centrum te kopen. Als onderdeel van de overeenkomst met Bruil had Accsys het recht om de gronden en gebouwen terug te kopen van Bruil als zij de gronden en gebouwen aan derden zouden verkopen. Van dit recht heeft Accsys thans gebruik gemaakt. De transactie is onder voorbehoud dat Accsys overeenstemming kan bereiken over de financiering van de koopsom ter grootte van € 23 miljoen (excl. BTW).
Accsys onderhandelt thans met een bank inzake voornoemde financiering en zal bij gelegenheid een nadere update verstrekken. Terwijl het gebouw en de gronden inmiddels zijn overgedragen aan Accsys, kan de transactie teruggedraaid worden, zonder verdere verplichtingen, indien geen acceptabele financiering verkregen kan worden. In dat geval zal de oude huurovereenkomst opnieuw van kracht worden.
Deze aankoop is een weergave van Accsys' ambitie om haar financieringsovereenkomsten te verbeteren. De leningsvoorwaarden, indien overeengekomen, zullen naar verwachting vergelijkbaar zijn met de huurovereenkomst. Echter de waarde van de activa en de bijbehorende schulden zullen toenemen omdat onder de huurovereenkomst een gedeelte van de huur als operationele lease werd geboekt.
Naar verwachting zal deze transactie over het geheel van de aankomende 20 jaar tot een lagere kostenpost resulteren. Eigendom van de grond zal naar verwachting meer flexibiliteit om de grond te benutten en mogelijke waarde vermeerdering.
Ends
For further information, please contact:
Accsys Technologies PLC |
Paul Clegg, CEO Will Rudge, FD Hans Pauli, Executive Director, Corporate Development |
via MHP Communications |
Numis Securities |
Nominated Adviser: Oliver Cardigan Jamie Lillywhite Corporate Broking: Christopher Wilkinson Ben Stoop |
+44 (0) 20 7260 1000 |
MHP Communications |
Tim Rowntree Kelsey Traynor |
+44 (0) 20 3128 8100 |
Off the Grid (The Netherlands) |
Frank Neervoort Yvonne Derske |
+31 681 734 236 +31 222 379 666 |
Notes to editors:
Tricoya® Consortium In March 2017, Accsys announced the formation of the Tricoya® Consortium to fund, build and operate the Tricoya® plant in Hull, UK. Members of the consortium include BP and the leading manufacturer of sustainable wood-based panels, Medite Europe DAC. Tricoya Ventures UK Ltd (TVUK), a subsidiary of Accsys, owns and will operate the Tricoya® plant. TTL exploits all Tricoya® related intellectual property and benefits from any Tricoya® related revenues other than those generated by the Tricoya® plant. The Tricoya® plant is expected to have an initial capacity of 30,000 metric tonnes of Tricoya® chips per annum, enough to produce approximately 40,000m3 of Tricoya® panel products per annum. The Tricoya® plant is expected to reach EBITDA breakeven at approximately 40% design capacity and to take approximately four years to reach full capacity following completion. The location of the Tricoya® plant at Saltend Chemicals Park in Hull allows for expansion when market conditions dictate.
Accsys Technologies PLC (www.accsysplc.com) is a chemical technology group whose primary focus is on the production of Accoya® wood and Tricoya® wood elements, technology licensing via its subsidiary, Titan Wood Limited, which has manufacturing operations in Arnhem, the Netherlands (through its subsidiary Titan Wood B.V.), a European office in London, United Kingdom, an American office in Dallas, Texas (via its subsidiary Titan Wood, Inc.) and technology licensing associated with the acetylation of wood elements via its subsidiary Tricoya Technologies Limited. Any references in this announcement to agreements with Accsys shall mean agreements with either Accsys or its subsidiary entities unless otherwise specified. Accsys Technologies PLC is listed on the London Stock Exchange AIM market and on Euronext Amsterdam, under the symbols 'AXS'. Accsys' operations comprise four principal business units: (i) Accoya® wood production; (ii) building and operating of Tricoya® wood chip acetylation plant in Hull; (iii) technology development, focused on a programme of continuous development of and improvements to the process engineering and operating protocols for the acetylation of solid wood and the development of technology for the acetylation of wood elements; and (iv) the licensing of technology for the production of Accoya® wood and Tricoya® wood elements across the globe.
Accoya® Wood (www.accoya.com) is produced using Accsys' proprietary patented acetylation technology that effectively converts sustainably grown softwoods and non-durable hardwoods into what is best described as a "high technology wood". Distinguished by its durability, dimensional stability and, perhaps most importantly of all, its reliability (in terms of consistency of both supply and quality), Accoya® wood is particularly suited to exterior applications where performance and appearance are valued. Moreover, the Accoya® wood production process does not compromise the wood's strength or machinability. The combination of dimensional stability, durability and retained strength means that Accoya® wood offers a wealth of new opportunities to architects, designers and specifiers. These benefits result in lower maintenance and total cost of ownership while using a higher sustainable and environmental responsible building material. For a full archive of Accoya® news, visit www.accoya.com/news.
Tricoya® Wood Elements (www.tricoya.com) are produced using Accsys' proprietary technology for the acetylation of wood chips and particles for use in the fabrication of panel products such as medium density fibreboard and particle-board. These products demonstrate enhanced durability and dimensional stability which allow them to be used in a variety of applications that were once limited to solid wood or man-made products. Exploitation of Accsys' proprietary technology relating to Tricoya® Wood Elements is carried out through Tricoya Technologies Limited. Tricoya® Wood Elements are lauded as the first major innovation in the wood composites industry in more than 30 years.
Wood Acetylation is a process which increases the amount of 'acetyl' molecules in wood, thereby changing its physical properties. When carried out to a sufficient level throughout the wood, this process protects wood from rot by making it "inedible" to most micro-organisms and fungi, without - unlike conventional treatments - making it toxic. It also greatly reduces the wood's tendency to swell and shrink, making it less prone to cracking and ensuring that, when painted, it requires dramatically reduced maintenance.
Accsys Technologies is the trading name of Titan Wood Limited. ACCOYA®, TRICOYA® and the Trimarque Device are registered trademarks owned by Titan Wood Limited ("TWL"), a wholly owned subsidiary of Accsys Technologies PLC, and may not be used or reproduced without written permission from TWL, or in the case of the Tricoya® registered trademark, from Tricoya Technologies Limited, a subsidiary of TWL with exclusive rights to exploit the Tricoya® brand.
