Antimicrobial and textile odour control materials developer HeiQ (LON: HEIQ) has acquired the land and property of Chem-Tex Laboratories Inc in the US for $2.5m in cash and shares at 74.4p each. The share price fell 1.5p to 72.5p.
This property in North Carolina was previously leased, and it is the base for the development of speciality chemicals for flooring and textiles. The sellers are three trusts where the beneficiaries are HeiQ shareholders.
Securing the site will enable further expansion. The focus of manufacturing investment will be the US because of the availability of chemicals and the reduced exposure to rising energy prices. These factors have held the business back in Europe.
Group operating margin should improve after the purchase. In the six months to June 2022, revenues were $30.3m and the operating profit was £1.24m. Full year operating margins are expected to be around 7.5%.