Dutch Airopack Technology Group AG (“Airopack”), manufacturer of the Planet Friendly Aerosol is pleased to announce it has exercised on December 29, 2017, its option to settle the purchase price of the IP acquired in 2004 from a third party for a fixed amount.
In 2004, Airopack acquired IP of part of the technology used in the pressure control device of Airopack from a third party. The purchase price of that IP was determined by a perpetual earn-out model.
In 2013, Airopack entered into an agreement with the former owner, granting Airopack the option to settle the purchase price for a fixed amount of EUR 25 million by December 31, 2018 at the latest, whereby it was agreed that Airopack would pay a certain amount per Airopack sold as an advance payment. As at 31 December 2017, the unpaid amount under this agreement is EUR 24.1 million.
Airopack has now exercised its option to settle the purchase price of the IP for the aforementioned amount of EUR 24.1 million and at the same time reached an agreement on the payment of the purchase price in quarterly increasing instalments, with the final instalment being payable by June 30, 2021. As consideration for the extended payment schedule, Airopack will pay a fixed amount of EUR 0.4 million together with the final instalment.
Frans van der Vorst, Chief Operating Officer Airopack commented: “We are pleased with the outcome of the discussions on the extended payment plan which will allow Airopack to settle the purchase price over the next four years at a pace matching the expected development of its operating cash flows.”
Airopack produces a safe, all-plastic pressurized Planet Friendly Aerosol powered purely by air that is environment and planet friendly. It was developed by Airopack Technology Group, which holds the relevant patents and is worldwide the sole producer of this unique Planet Friendly Aerosol. Airopack has a worldwide customer base including multiple AAA leading personal care brands.