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The Bioprocess Capital Ventures Fund sold the company ARPM JSC to Krastsvetmet

11.02.2020

The Bioprocess Capital Ventures Fund, established with the participation of RVC capital, withdrew from Axion — Rare and Precious Metals (ARPM), selling its stake in the project with an investment return of 22.5% (IRR). The buyer of the Fund's share was the country's largest precious metals processor — Krastsvetmet.

The ARPM company, incorporated in 2010, is engaged in the development and production of new ion-exchange materials (resins, sorbents) for the selective extraction of rare, rare-earth, and precious metals, such as uranium, indium, thorium, scandium, cesium, lithium, palladium and others. Due to the high selectivity fraction, materials created by ARPM are in demand in many fields, in particular, in nuclear technologies.

Alexey Basov, Deputy General Director-Investment Director, RVC
ARPM is a dynamically developing company, and today it is one of the leaders in the Russian market of selective ion-exchange resins. It has demonstrated a good result for the management team and RVC as a fund investor. I am sure that the growth potential of the company's value is far from exhausted, and it will continue to develop in synergy with the largest Russian producer of precious metals.
Vladimir Tezov, General Director of Bioprocess Capital Partners
ARPM is a striking example of the intellectual potential of young researchers in Russia: the company grew out of a Ph.D. thesis by Dmitry Kondrutsky. As a Foundation, we believed in the scientific development of a young scientist and supported him with our funding. The project was also evaluated and supported by the Skolkovo Innovation Centre and the Fund for the Promotion of Small Business Development in the Scientific and Technical Field. The company successfully passed the R&D stage, entered pilot production, and was able to develop a product in which not only Russian but also foreign enterprises are interested, as evidenced by many years of experience in working together. Both international and strategic Russian enterprises from various industries expressed interest in acquiring the company. We are thrilled by our deal with Krastsvetmet and wish further prosperity to the new partnership.
Dmitry Kondrutsky, General Director of Axion — Rare and Precious Metals JSC
This deal is vital to us. Looking back, I want to thank the Bioprocess Foundation for believing in us. Many gifted young people in Russia can offer something new. However, the path from an innovative idea to an established business is thorny and complicated. Many innovative companies, finding themselves without external sources of financing, become unviable. I am glad that our example proves the opposite. Over the years, the ARPM team put the scientific idea into practice, created a line of products demanded by the market, and ensured the economic growth of the company. Today, we have several Russian and foreign patents. In countries such as the USA, China, Japan, Germany, and India, we carry out contracts with Russian and international companies. We need more serious investments to open large-scale production of resins and sorbents. This transaction was the logical conclusion of the stage of formation. And we hope that our new founders will have enough opportunities and competencies to help us reach the next level: from a small business to a large business. A business, which, being associated with the extraction of rare and rare-earth metals, promises to become essential for the development of the domestic economy. We have much work ahead. Combined with the new opportunities that opened up after the deal, this is inspiring.
Vladimir Osipenko, Deputy General Director of Krastsvetmet
The acquisition of ARPM by Krastsvetmet is the next step in the development of relations between our companies after several years of joint work on projects in the field of sorption extraction of precious metals. Yet, we see the main potential of ARPM in the area of rare and rare-earth metals. For Krastsvetmet, this is a move towards diversification and entry into new markets not related to precious metals.



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