Bioquell surges on offer from Bill Gates-backed Ecolab

Bioquell shares surged on Friday as it agreed to be bought by US hygiene company Ecolab for £140.5m.

Under the terms of the offer, Bioquell shareholders will be entitled to receive 590p in cash for each of their shares. This represents a premium of about 40.5% to the closing price on Thursday and 23.1% to the three-month volume-weighted average closing price.

Ecolab provides water, hygiene and energy technologies and services. It delivers comprehensive solutions and on-site services to promote safe food, maintain clean environments, optimise water and energy use and improve operational efficiencies for customers in food, healthcare, life sciences, hospitality, energy and industrial markets in more than 170 countries around the world.

Bioquell, meanwhile, manufactures infection control, bioburden control and environmental filtration technology.

Bioquell said in a statement that its directors, who were advised by N+1 Singer, consider the terms of the offer to be "fair and reasonable" and intend to recommend that shareholders vote in its favour at the next general meeting.

Executive chairman Ian Johnson said: "As part of Ecolab, Bioquell will be able to drive faster strategic growth in both life sciences and healthcare markets leveraging Ecolab's extensive global footprint.

"The Bioquell directors believe the strategic fit is extremely strong and that the combination offers employees and customers a highly desirable opportunity to continue Bioquell's successful tradition.

"Ecolab's offer provides Bioquell shareholders with a certain cash exit at a premium to the price at which the company's shares have traded recently and is supported by Bioquell shareholders representing, in aggregate, approximately 55.10% of the existing issued ordinary share capital of Bioquell."

At 0845 GMT, Bioquell shares were up 37% to 575.10p.