Xeros Technology Group, which is a developer and provider of water saving and filtration technologies, has agreed to sell its four US Marken specialist cleaning sites.
Subject to closing conditions, completion is expected to take place by the end of March.
The sale of these sites completes the Rotherham company’s planned transition to a licensing model where its intellectual property is commercialised by licensees with royalties paid to the company.
Following the completion of the deal, Xeros will cease to have any operations in the US and will have an organisation of close to 50 full time personnel dedicated to licensing.
In 2018, the Marken US sites generated combined revenue of £858,000 and an operating loss of £1,933,000.
The Marken business reported net assets of £1,897,000 at the end of 2018.
Proceeds of £265,000 will be received in cash by Xeros upon completion.
These proceeds will be used to fund the group’s ongoing working capital requirements, Xeros said.
Mark Nichols ,the chief executive of Xeros, said: “We are very pleased to have reached our objective of becoming an asset light and IP rich licensing organisation.
He added: “We are now working hard to execute the contracts with our license partners in India and China with evidence and learnings from these being the platform for further geographic and segmental coverage and we look forward to updating the market on our progress in the near future.”
Xeros Technologies is built around research which was originally carried out by the school of textiles at the University of Leeds.
During research into the way dye is applied to different fabrics using polymers, nylon was found to be highly effective in removing unwanted stains and dyes from fabric.
To harness this discovery, Xeros Technology Group plc developed polymer-based technologies that use less water.
The company has created a system that reduces water consumption by up to 80 per cent in laundry cleaning and textile garment manufacture, which helps to protect the environment.