- Barkby Group Considers Sale of Sleep Technology Developer
- Strategic Review of Cambridge Sleep Sciences (CSS) Investment
- Potential Revenue and Partnerships for CSS
Barkby Group shares more than doubled in value on Monday after it disclosed the potential sale of a sleep technology developer, in a possible deal worth tens of millions.
The AIM-listed company informed investors that it was “exploring options to maximize shareholder value” from Cambridge Sleep Sciences (CSS), a company that manufactures products to improve natural sleep using neuroscience.
The company was contemplating selling CSS to concentrate on its roadside real estate portfolio.
Barkby operates multiple convenience stores, drive-thru restaurants, and EV charging infrastructure sites, among other assets, in arterial road locations from its headquarters in Abingdon.
In addition, it owns a used vehicle dealership in Northamptonshire as well as six gastropubs in the Cotswolds, Oxfordshire, and Sussex.
The company announced that it had hired consultants to conduct a strategic review’ of its investment in CSS, which is known for its SleepHub and SleepEngine products.
According to reports, a sale of Barkby could generate around £50 million, but the company assured investors that there is “no certainty” that any offer or sale will materialize.
Barkby insiders were in talks to grant access to the company’s technology to ‘prominent names’ in the hotel and healthcare industries.
Barkby anticipates that the division will generate an annual revenue of at least £10 million over the next three years, based on the licensing agreements presently in place.
CSS struck a five-year arrangement with Sleep Sense International to use its SleepEngine technology to make a smart pillow three months ago.
A week later, the company announced a partnership and licensing agreement with the consumer audio division of medical technology manufacturer Masim, Bowers & Wilkins.
“We’re thrilled with CSS’s progress over the past three years,” said Barkby executive chairman Charles Dickson.
‘The market opportunity for its technologies is undoubtedly significant, and we look forward to providing further updates on CSS’s progress in due course.
We anticipate that CSS will become a significant business in its own right, and the purpose of the strategic review is to determine the most suitable corporate setting and structure for the company to enable it to reach its full potential, as well as what is in the best interests of Barkby’s shareholders.
Following the announcement, Barkby Group shares skyrocketed 144.4 percent, or 4.33 pence, to 7.33 pence.
