Light Emitting Polymer (LEP) pioneer continues to set the pace of development
CDT Limited, the UK company leading the commercial development of displays based on light emitting polymers (LEP), today announced that its shareholders have accepted in principle an offer from Kelso Investment Associates and Hillman Capital, valuing the company at £70 million and attracting an additional investment of £10 million.

Kelso Investment Associates is one of the oldest and most respected US private investment firms. Hillman Capital is a US merchant bank that specialises in financing and assisting emerging growth companies.

The Kelso-Hillman investment will enable CDT to continue to position itself globally as a centre of excellence for light emitting polymer development. The company will move into new facilities in July and plans to invest £2 million over the next 18 months in a world class laboratory on the site.

"It is important for CDT to maintain its pre-eminent position in LEP technology. As the first products should now be coming to market, CDT needs to be able to meet the high demands for technology transfer and product development that will be made of us. This investment goes a long way to enable that, and secures not only the existing jobs but allows us to recruit more world class people into our team", said Danny Chapchal, CEO, CDT.

CDT, chaired by former Trade and Industry Secretary Lord Young of Graffham, spun out of the Cavendish laboratories at the University of Cambridge, UK in 1991, following the discovery of LEP. LEPs are a type of plastic that glow in a variety of colours using very little power; their development could ultimately lead to flat, flexible, large area TV displays, revolutionising the electronic display industry.

Since the appointment of Danny Chapchal as CEO in March 1996, CDT has pursued a strategy of licensing and joint development with major chemical and display corporations while developing core polymer expertise at its headquarters in Cambridge, UK. Amongst its partners are Seiko-Epson, Philips, DuPont and Hewlett-Packard.

"The deal also sees a restructuring of the company whereby CDT’s parent company will become a US corporation. Although this will not affect our operations here in Cambridge, it will allow CDT to have access to the more technology aware capital markets of the USA and we plan to drive aggressively towards a public offering there", said Chapchal.

"This deal will appeal to those shareholders who want to sell shares at a handsome valuation whilst enabling those who wish to continue with the company. I am sure that the company will benefit greatly from the new shareholders who, apart from the necessary additional investment, will be able to help us open the American market in the future", said Lord Young.

About CDT
CDT is leading research and commercial development of light emitting polymers (LEP). The company holds fundamental patents in the area that are set to significantly change a wide range of consumer electronic products. CDT announced its commercialisation strategy to bring its LEP technology to market through patent and know how licensing in the middle of 1996.