LONDON, UK: HeiQ Plc (LSE: HEIQ) announced the acquisition of the land and property of Chem-Tex Laboratories Inc. in North Carolina, USA for a total consideration of US$2.5 million.
US$550,000 will be paid in cash and US$1.95 million in HeiQ Plc shares. The acquisition will strengthen the Company’s footprint in the USA, which is a key market for HeiQ.
Since May 2017, HeiQ’s US subsidiary, HeiQ ChemTex has leased Chem-Tex’s real estate property in Concord, North Carolina to develop and manufacture specialty chemicals for the functional flooring, textile, and industrial chemicals industries. HeiQ has now made a strategic decision to assume ownership of the land and property in order to safeguard past and future investments into its operations site. HeiQ foresees further expansion of the location over the coming years, serving mainly its global textile, functional flooring and industrial chemicals business.
This Acquisition is expected to improve HeiQ’s operating margin in 2023 and beyond and will also enable HeiQ to focus its future manufacturing investments in the USA, which have proven to be less exposed to energy price increases and critical base chemical raw materials availability challenges experienced in Europe in the recent years.
The sellers of Chem-Tex are three trusts, the beneficiaries of which are related to a minority shareholding of HeiQ Plc.
Recently joined HeiQ Chemtex Inc. (USA) CEO, Mike Abbott (former Hanes Inc. CTO) said: “We are excited to announce the acquisition of Chem-Tex’s land and property, which is expected to improve operating margin for 2023 and beyond and also enable further expansion of HeiQ’s current footprint in the USA market, that remains resilient in the current volatile macroeconomic environment.”