Notice of Termination of Material Contract
ConvaTec terminates Master Supply Agreement
03 June 2019
Notice of Termination of Material Contract
Scapa Group Ltd (AIM: SCPA) announces that on Friday 31 May after the market closed, Scapa received notice from ConvaTec Inc. (ConvaTec) that it was terminating the Master Supply Agreement (MSA) with Scapa Tapes North America LLC; accompanying the notice was an action for a declaratory judgment concerning the MSA filed by ConvaTec in federal court in New Jersey.
Neither the Company nor Scapa Tapes North America LLC accept that ConvaTec has any grounds to terminate the five year supply agreement in respect of which a three year term remains, nor to pursue its declaratory judgment claim. The Company and Scapa Tapes North America LLC have instructed external legal counsel and will strongly contest and defend their rights under the MSA and in response to the New Jersey action in which it will assert and pursue all appropriate rights and remedies.
The MSA provides for a binding contractual commitment for a minimum circa. US$30m of revenue per annum. The Company is assessing the potential profit implications and will issue a further update accordingly.
For further information:
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Scapa Group Ltd |
0161 301 7430 |
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Numis Securities Limited |
020 7260 1000 |
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FTI Consulting |
020 3727 1000 |
Scapa Group Ltd is a diversified Healthcare and Industrial company focused on bringing best-in-class innovation, design and manufacturing solutions to its customers.
Healthcare
Scapa Healthcare is the trusted strategic partner of choice for the world's leading companies in Advanced Wound Care, Consumer Wellness and Medical Device Fixation. We partner with the top global MedTech companies to develop and manufacture innovative skin friendly medical device fixation and topical solutions, from inception through to market delivery, from our state-of-the-art facilities.
For further information, please visit www.scapahealthcare.com
Industrial
Scapa Industrial is a global supplier of bonding solutions and manufacturer of adhesive-based products which offer meaningful value in industrial applications due to their lightweight, easy-to-apply properties. We are recognised for our unparalleled range of products, including adhesive tapes, films and foams, and we can engineer custom designs for even the most unique applications.
For further information, please visit www.scapaindustrial.com
