Proventec plc, a provider of specialist steam cleaning and coatings technologies, has bought a majority stake in a manufacturer and distributor of cleaning and hygienic products.

Proventec plc, a provider of specialist steam cleaning and coatings technologies, has bought a majority stake in a manufacturer and distributor of cleaning and hygienic products.

The company bought an 80% stake in Cornwall-based Contico Manufacturing for £5.5 million. The remaining 20% shareholding is held by Contico’s management.

The deal was financed by £3.7 million from the Proventec’s existing cash reserves and £1.8 million of bank debt. Some £5.1 million of the consideration was paid on completion.

The deal provides new routes to market for the Liverpool-based company’s products and is expected to increase its profits.

Proventec’s products are used in the healthcare, food manufacturing, hospitality, transport and construction sectors. Its products include OspreyDeepClean, a chemical-free specialist dry saturated steam cleaning technology. The company’s coatings division provides non-toxic, phosphorous-based coatings and chemicals for wood, cotton and plastics. 

Contico sells its products throughout the UK, which are also exported to Europe, the Middle East and Far East. Its turnover for the year ending December 31, 2006 stood at £8.8 million with a profit before tax of £400,000.