Savaria to acquire sling manufacturer Silvalea
June 18 2019 - 4:05PM
Savaria Corporation (“Savaria”) (TSX: SIS), one of the global
leaders in the accessibility industry, announces today that it has
entered into an agreement with the owners of Silvalea Ltd.
(“Silvalea”) and its sister company, D-ansermed Ltd.
(“D-ansermed”), (collectively, the “Silvalea Group”) pursuant to
which Savaria would acquire all of the issued and outstanding
shares of Silvalea and D-ansermed, for a total purchase price of
GBP 4.6 million (approximately CAD 7.8 million), subject to
customary closing conditions and adjustments (the “Transaction”).
The Transaction is expected to close in July 2019.
Established in 1993, Silvalea is a leading
manufacturer of patient transfer slings and accessories. The
company specializes in the design and development of challenging
and complex patient transfer solutions, with an extensive catalog
of over 800 sling designs. D-ansermed is an affiliate of Silvalea
that was formed in 2012 to develop innovative safety components
used in patient moving and handling operations. The Silvalea Group
of companies is headquartered in Newton Abbot, UK.
In its last fiscal year, the Silvalea Group
recorded revenue of GBP 4 million (approximately CAD 6.8 million)
and adjusted earnings before interest, taxes, depreciation and
amortization (“Adjusted EBITDA”1) of approximately GBP 600k (or CAD
1.0 million).
Key Highlights
- Silvalea sells 70,000 slings annually and maintains a
reputation as a key patient sling solutions provider. Approximately
85% of Silvalea’s sales are generated in the UK and Europe, with
the remainder from international markets, primarily Australia and
Canada. According to an independent study performed by Grand View
Research2 the global medical sling market is forecast to be in
excess of $500 million (USD) in 2019 with an annual growth rate of
11%.
- The company designs and makes over 800 different sling designs
in its UK-based factory, including in-situ (long stay), direct
replacement, and made-to-measure slings in a variety of
patient-appropriate fabrics. A single ceiling lift installation can
use hundreds of slings over the course of its product
lifespan.
- Savaria would leverage Silvalea’s sling manufacturing expertise
and know-how, to accelerate the production of custom slings from
Greenville, South Carolina (Span America) to serve the US and
Canadian markets.
- The Transaction would also provide Savaria with cross selling
opportunities for patient lifts and pressure care products into
Silvalea’s established UK and European customer channels.
- Key senior management from Silvalea would remain in place, post
transaction closing.
“The extensive offerings and industry leading reputation of
Silvalea is an exceptional complement to our ceiling lift product
portfolio. Our research team in Magog, Québec, headed by Jonathan
Benoit would work closely with the R&D team at Silvalea to
continue to bring the most innovative, high quality patient
handling solutions to the market. This is an outstanding
opportunity for Savaria to leap ahead in the patient handling
market and benefit from recurring revenue. I look forward to what
we can accomplish together,” said Marcel Bourassa, President and
Chief Executive Officer of Savaria.
1 It should be noted that Adjusted EBITDA is not
a performance measure defined by IFRS, but we, as well as investors
and analysts, consider that this performance measure facilitates
the evaluation of our ongoing operations and our ability to
generate cash flows to fund our cash requirements, including our
capital expenditures program. Note that our definition of this
measure may differ from the one used by other public
corporations.
2 Medical Lifting Slings Market Analysis and
Segment Forecasts to 2024, Grand View Research 2016.
Savaria Corporation Profile
Savaria Corporation (savaria.com) is one of the
global leaders in the accessibility industry. It provides
accessibility solutions for the physically challenged to increase
their comfort, their mobility and their independence. Its product
line is one of the most comprehensive on the market. Savaria
designs, manufactures, distributes and installs accessibility
equipment, such as stairlifts for straight and curved stairs,
vertical and inclined wheelchair lifts, elevators for home and
commercial use, as well as ceiling lifts. It also manufactures and
markets a comprehensive selection of pressure management products
for the medical market, medical beds for the long-term care market,
mattress overlays and foam pillows for the retail market and
certain products for the industrial market. In addition, Savaria
converts and adapts vehicles to be wheelchair accessible. Savaria
records approximately 75% of its revenue outside of Canada,
primarily in the United States. It operates a sales network of some
500 dealers worldwide and 29 direct sales offices in North America,
Europe (Switzerland, Germany, Italy, Czech Republic and Poland),
Australia and China. Savaria employs approximately 1,400 people
globally and its plants are located in Canada: Laval and Magog
(Québec), Brampton, Beamsville and Toronto (Ontario) and Surrey
(British Columbia), in the United States at Greenville (South
Carolina), in Huizhou (China) and in Milan (Italy).
For further information: |
|
|
Marcel BourassaPresident and Chief Executive
Officer1.800.661.5112 |
Nicolas Rimbert, CFAVice President, Corporate
Development1.800.931.5655nrimbert@savaria.com |
www.savaria.com facebook.com/savariabettermobility twitter.com/Mobilityforlife |
Forward-Looking Statements
The statements set forth in this press release,
which describe Savaria’s objectives, projections, estimates,
expectations or forecasts, may constitute forward-looking
statements within the meaning of securities legislation. Positive
or negative verbs such as “will”, “plan”, “evaluate”, “estimate”,
“believe”, “expect” and other related expressions are used to
identify such statements. Savaria would like to point out that, by
their very nature, forward-looking statements involve risks and
uncertainties such that its results, or the measures it adopts,
could differ materially from those indicated or underlying these
statements, or could have an impact on the degree of realization of
a particular projection. Major factors that may lead to a material
difference between Savaria’s actual results and the projections or
expectations set forth in the forward-looking statements include
the effects of the integration of acquired businesses and the
ability to achieve projected synergies, fluctuations in margins on
motor fuel sales, competition in the convenience store and retail
motor fuel industries, exchange rate variations, and such other
risks as described in detail from time to time in documents filed
by Savaria with securities regulatory authorities in Canada. Unless
otherwise required by applicable securities laws, Savaria disclaims
any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. The forward-looking information in this press release
is based on information available as of the date of the
release.
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