Tuesday, November 6, 2018

News: Xeros signs US deal as it moves to licensing model

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Rotherham-based Xeros Technology Group plc has signed a licensing deal in the USA as it moves to a "IP-rich, capital-light" business model.

Based on the Advanced Manufacturing Park (AMP), Xeros is a Leeds University spin-out that uses polymer technology to significantly reduce the amount of water used in a number of major applications. The remaining water becomes far more efficient in either affixing or removing molecules from substrates such as fabrics and garments. The result being significant improvements in economic, operational and sustainability outcomes.

Xeros has signed an agreement with Eastern Laundry Systems Inc (ELS), granting the exclusive rights to take over the servicing of Xeros' commercial laundry customers in nine states across the East Coast of the US, including New York, New Hampshire and Massachusetts. The Group's commercial laundry business is branded Hydrofinity.

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ELS, based in Taunton, Massachusetts is a large full-service distributor of commercial laundry equipment, parts and chemistry to both the on-premise laundry and laundromat markets. It will now service all Hydrofinity's existing and future customers in the region with significant savings accruing to Xeros. ELS will also continue to stock and sell Hydrofinity commercial washing machines.

This agreement reflects the Hydrofinity strategy to reduce its physical presence in markets and progressively move to a licensing model. This model has already been rolled-out in international markets with agreements in place in South Africa, UAE, Australia and China. The Group is planning to implement similar arrangements for the remainder of the US.

Mark Nichols, chief executive of Xeros, said: "Following our recent agreements in China, Dubai and South Africa, this is another important step in the migration of our Hydrofinity business towards a licensing model.

"This agreement, and we anticipate further agreements for other US regions in the near future, will enable Hydrofinity to increase revenues from a lower cost base whilst continuing to provide customers with excellent service."

Moving to a fully indirect business model, the group's main income comes from the close to 400 Hydrofinity machines deployed around the world. Xeros is working to secure deals with manufacturers to incorporate Xeros technology in their products and aims to complete the commercialisation of current applications by the end of 2019.

Xeros website

Images: Xeros

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