Polygiene, the Swedish supplier of anti-viral solutions, is proposing the issue of new shares worth about 280 million Swedish kronor (€27.5m-$33.5m), subject to approval at an extraordinary shareholders’ meeting scheduled for Dec. 30, to help finance the acquisition of Addmaster Holdings, its U.K.-based supplier of anti-microbial additives for hard surfaces, for SEK 374 million (€36.7m-$44.7m) in cash and shares. A total of 10,256,411 new shares will be issued to a number of institutional investors at a unit price of SEK 37.3, representing a discount of around 3.5 percent on the closing price on Dec. 10. The direct placement is to diversify the ownership base of Polygiene. Combined with the issue of shares to the sellers, it will dilute the number of shares and votes in the company by around 41.9 percent. According to Polygiene, the merger should result in accretive operating profit of SEK 61 million (€6.0m-$7.3m) over the next three years, as Addmaster’s clients demand more protection for soft surfaces, while those of Polygiene demand it for hard surfaces. In the 12 months ended on Sept. 30, Addmaster generated an Ebitda margin of about 38 percent on sales of SEK 72.5 million (€7.1-$8.7m).

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