Zotefoams has entered into a strategic partnership with Nike to develop footwear technology and supply materials for the company. Through this partnership, Zotefoams will work exclusively with Nike to develop and manufacture innovative new foam enhanced products within the footwear industry. Nike has already adopted Zotefoams’ PEBA foam within some of its high end trainer and today’s announcement is clearly a significant endorsement, and indication of future growth potential within this market. We retain our Buy recommendation and 450p TP, based on a c.£40m valuation for MuCell and 12x EV/EBITDA for the remainder of the Group.