By LIAM DANN
A space age wool protein product developed by former Wool Board company Keratec is to get a huge global push following a distribution deal with British cosmetic ingredients company Croda.
Keratec is a majority owned subsidiary of Wool Equities, which lists on the NZAX tomorrow.
Croda, which has global
revenue of more than $800 million, will give Keratec the reach it needs to launch its revolutionary cosmetic ingredients into the global market, said Wool Equities chief executive Mark O'Grady.
He would not put a value on the deal.
Keratin protein is already widely used in shampoos and beauty products to strengthen damaged hair and promote healthy skin.
Most commercial keratin is made of protein fragments extracted from hoofs and horns. Keratec is believed to have achieved a world first in extracting whole protein molecules from wool, making its products significantly more effective than others in the market.
As the market leader in providing raw materials for the cosmetics industry, Croda was the ideal choice of partner, O'Grady said.
As well as the distribution deal, Keratec would have an ongoing strategic relationship with Croda, he said. The collaboration between research teams at both companies was a particularly exciting prospect.
Wool Equities received another boost this week with the announcement that 55 per cent of farmers had decided to retain shares in the company.
Farmers were offered redeemable preference shares in Wool Equities when the Wool Board's assets were redistributed.
It was a fantastic vote of confidence in the new company that the majority of farmers had chosen to keep shares rather than cash them in, O'Grady said.
The shares represented $12 million of extra capital for Wool Equities, about $1 million more than the company forecast in its prospectus.
"Farmers had already been allocated ordinary shares in the company and for more than half of them to choose to make an additional investment is a great result," O'Grady said.
The extra cash meant Wool Equities was well resourced to deliver on the business plan outlined in its investment statement, he said.
Wool Equities shares can be traded only between wool farmers. A shareholder vote is planned in two years to decide whether the register should be opened to the general public.
