Biocide company acquired by Swiss IP giant

Leading biocides company – Tarn Pure – has been acquired by Switzerland-based materials, innovation and hygiene technologies experts HeiQ Plc for £850,000, with the support of our national law firm.

Tarn Pure is one of only three businesses authorised by the European Chemicals Agency (ECHA) and the GB Health and Safety Executive (HSE) to place on the market copper and silver conformed for use as Biocidal Active Substances which may be formulated into Biocidal Products. This technology is used primarily to treat and control water borne pathogens that are harmful to human health. Typical examples include gram negative bacteria such as legionella, ecoli and Pseudomonas.

Founded in 2005, HeiQ creates textile technologies, high-performance surface coatings and polymers, probiotics and consumer healthcare goods. The acquisition will support HeiQ’s position as the key supplier of elemental copper and elemental silver to the wider hygiene industry for use as safe and effective antimicrobials, particularly in the face of changing EU regulations that will see a number of biocides phased out in the coming years.

Subject to adjustments for cash, working capital and debt positions as of closing date consideration for Tarn Pure will be approximately £850,000, with 50% in cash and 50% through the issue of new ordinary shares in HeiQ.

Paul Hardman, partner at Shakespeare Martineau who led the deal, said: “I was delighted to help our client achieve this sale having looked after Tarn Pure for the last 10 years. This is a great deal for both sides. Our client was looking to sell their business as they wished to step back from day to day management, but was keen to see it bought by a company that understands the highly regulated market that Tarn-Pure works in and which will take the technology to a wider market, with potentially significant increase in applications.

Robert Collins, Tarn-Pure’s CEO, said, when announcing the sale: “Tarn-Pure is a small business trading in a complex and highly regulated market place. Finding a buyer of the quality of HeiQ leaves the business in excellent hands for the future. The process of managing the transaction was made much easier by the guidance and advice provide by Shakespeare’s corporate finance team, headed by Paul Hardman, who has been our legal advisor since the current shareholders acquired Tarn-Pure in December 2011.”

HeiQ’s EVP Tom Ellefsen said: “The HeiQ group has an impressive product range of antimicrobials. Thanks to the recent acquisitions of RAS Ltd., Life Materials Ltd. and Touchguard’s Patents, HeiQ has built a unique capability to serve the hygiene industry with effective solutions.

“The acquisition of Tarn-Pure’s regulatory asset strengthens HeiQ’s ability to offer the market access to Europe and the UK for products containing antimicrobial copper and silver. I expect our sales in silver and copper technologies to significantly grow in 2023 thanks to now one of the strongest regulatory portfolios in the market.“