Accsys Technologies PLC, the environmental science and wood technology company, announced it has signed heads of terms concerning a formation of a joint venture with INEOS Industries, part of the Ineos global chemical group. This agreement will see the formation of 50:50 joint venture (JV) relating to Tricoya® wood elements.
Paul Clegg, Accsys’ Chief Executive Officer, commented: “The heads of terms are an important step forward for Accsys and represent a major commitment by INEOS to the development and licensing of Tricoya® wood elements technology. Through the JV INEOS will add significant resources, licensing and product development expertise and global reach to our efforts to drive the penetration by Tricoya® of the worldwide panel products market estimated to be worth more than EUR 60 billion annually.”
INEOS is one of the world’s leading manufacturers of chemicals, and is a global leader in the field of technology development and licensing, having sold technology in more than 50 countries. Its global presence and expertise in development, commercialisation, licensing and technology transfer will play a key role in attracting new licensees and in opening up new and previously untapped markets for Tricoya®.
Under the terms of the agreement, which are not legally binding, Accsys will grant the JV an exclusive global licence to exploit Accsys’ proprietary acetylation technology for the production of Tricoya® wood elements for use within MDF, particle board and wood plastic composites.
All future licensing agreements for Tricoya® wood elements will be entered into by the new JV. Revenue generated by the new JV is to be split to reflect the relative interests of the two parties taking into account the value that each brings to the venture, including the significant IP value contributed by Accsys.
Once full agreements have been completed, INEOS will make a significant investment in the JV over the initial three years, and will in addition subscribe in new equity in Accsys which will be used by Accsys to fund its share of the JV costs in the initial years. The heads of terms further provide INEOS with scope to increase their equity position in Accsys through the exercise of warrants.Paul Clegg, Accsys CEO, said: “These head of terms demonstrate the recognition by INEOS of the huge growth potential of Tricoya® and greatly improves the likelihood of the commercial success of this exciting new technology. The investment by INEOS in Accsys and in the development of the Tricoya® JV will greatly facilitate the roll-out of new licensing agreements and support the long-term revenue growth of the Company”.