IMSPEX Diagnositcs Press Release
26th September 2016
IMSPEX Diagnostics Ltd and Jinan Hanon Instruments Ltd announce the acquisition of a strategic controlling interest by the Chinese company in the Welsh technology start-up.
Undisclosed consideration representing a several times multiplier on IMSPEX’s initial funding round
Significant return for IMSPEX investors, plus involvement in business going forward
Access to Chinese market for IMSPEX’s high-tech products
IMSPEX Diagnostics Ltd. (IMSPEX), the UK analytical instrumentation provider owner of 90% of GAS GmbH (www.gas-dortmund.de) announced today a strategic agreement with Jinan Hanon Instruments Ltd. (HANON), a leading Chinese manufacturer of analytical chemistry instrumentation based in Jinan, Shandong Province, China.
In virtue of this agreement, HANON has acquired a controlling interest in IMSPEX’s share capital, which also gives it control of IMSPEX’s subsidiary, GAS GmbH. In addition, the parties expect to explore significant synergies in the Research, Development, Manufacturing, Marketing and Sales of their respective product lines.
Santi Dominguez, CEO of IMSPEX, commented on the announcement: “We are very excited to have closed this deal with HANON. HANON is a significant player in the analytical chemistry market in China. They are a strong, well-funded company, with outstanding state-of-the-art manufacturing and R&D facilities. This alliance will provide the IMSPEX/GAS Group with the stability and resources we need to further develop our markets for our very high quality range of instruments. We expect this deal to provide excellent access to the Chinese market for our range of products, to provide us with a wider product range developed by HANON, and to allow us to leverage the outstanding
manufacturing and R&D capabilities HANON has. This is a major event in the development of our company, and we look forward to a bright new future, and to work closely with our new Chinese partners.”
Sunny Wang Chairman of the Board of Directors of HANON, commented: “The acquisition of an interest in the IMSPEX Group is a major step in the internationalization of HANON. This is our first overseas acquisition and we are very excited by the technology and expertise of IMSPEX/GAS, which is very well aligned with our current business focus. We believe it will prove very successful in our Chinese markets, and we very much look forward to the opportunities to support the development of the company in its current markets”.
Tim Mills, Investment Director at the Angel CoFund, one of the Venture Capital investors in IMSPEX, commented: “The deal between IMSPEX and HANON is a significant step towards a very exciting future for both businesses. The deal is strategically important forIMSPEX as they look to expand into the Chinese market, something that would be difficult for them to do without a partner like HANON to provide a strong footing for success in the Asian arena.The deal also provides the Angel CoFund a good return on our investment, which, with the circular investment model of the CoFund, means that we can re-invest into other exciting British businesses – so it’s positive news for the UK entrepreneurial ecosystem.”
Steve Smith, Director for Technology Venture Investments at Finance Wales, commented “that securing the investment from Hannon was a major achievement and the new partnership will help Imspex accelerate its sales in the US and Asia. It will also provide a profitable return to Finance Wales, enabling the Technology Venture team to re-invest in the next generation of fast growth, IP rich, technology based businesses in Wales.
IMSPEX Diagnostics Ltd was advised by Greenaway Scott, solicitors, and Broomfield and Alexander, auditors and accountants, two of the foremost firms In Cardiff, Wales. The deal was facilitated by Bank M (http://www.bankm.de/webdyn/content.html).
IMSPEX is a Welsh technology startup founded in 2012 and engaged, through its 2013 acquisition of GAS GmbH, in the manufacturing and commercialization of analytical solutions for highly sensitive, rapid Volatile Organic Compound analysis, based on Ion Mobility Spectrometry. The IMSPEX/GAS group have developed a position of technological leadership in the combination of Gas Chromatography and Ion Mobility Spectrometry, with applications in Food and Beverage, Environmental and Health Care/Diagnostics. IMSPEX has been funded to date by a combination of private angels and investment from Finance Wales (http://www.financewales.co.uk/) and the Angel CoFund/British Business Bank (http://www.angelcofund.co.uk/).
Hanon is a fast growing manufacturer of analytical instruments and solutions, which contribute to food safety and nutrition as well as drug quality supervision. Founded in 2006, the company headquartered in Jinan, operates about 3,500 points of sale throughout the PRC. With more than 400 employees, Hanon generated a group-revenue of RMB 110 million in 2015. Hanon is a specifically certified national high-tech enterprise complying with international standards. Since 2014, Hanon is listed at the NEEQ (National Equities Exchange and Quotations), a state-controlled OTC board for fast growing companies.