TIDMAMS
RNS Number : 0924G
Advanced Medical Solutions Grp PLC
23 November 2020
Advanced Medical Solutions Group plc
("AMS", the "Company" or the "Group")
Acquisition of Raleigh Coatings
- GBP22 million acquisition of woundcare and bio-diagnostics business
- Revenue generating and earnings enhancing
- Strong strategic fit with commercial synergies and new commercial opportunities
Winsford, UK, 23 November 2020 : Advanced Medical Solutions
Group plc (AIM: AMS), the surgical and advanced woundcare
specialist company, today announces that it has acquired Raleigh
Adhesive Coatings Limited ("Raleigh"), an independent woundcare and
bio-diagnostics coatings business for GBP22 million in cash (the
"Acquisition").
Acquisition rationale and benefits
The Acquisition will strengthen AMS's position in the woundcare
sector by bringing in-house specialist services of acrylic and
silicone coating, perforation processing and some bulk materials
converting capabilities which are currently outsourced. Silicone
coating and perforation capabilities are particularly important to
AMS as they are intrinsic to all modern advanced woundcare foam
dressings. Raleigh is an existing key supplier, producing the
coated adhesive mesh used in the new LiquiBand(R) XL device, an
important part of the Group's continued US growth strategy and
currently undergoing clinical trials. In addition, Raleigh's
expertise will allow the Company to enter the bio-diagnostic
testing sector.
The Acquisition brings strong synergies with AMS's finished
product offering, with the opportunity to increase the efficiency
of the Company's woundcare manufacturing operations and provide
entry points into new customers and markets, cross-selling of
products and services as well as an R&D pipeline of new
projects in the medical space.
Terms of the transaction
The Acquisition is for a total consideration of GBP22 million in
cash, payable on completion, on a debt-free and cash-free basis, to
be funded from AMS's existing cash resources, which were GBP67.9
million at 30 June 2020.
Overview of Raleigh
Raleigh is one of the very few companies worldwide that offers
acrylic and silicone gel contract coating for the woundcare market,
and the only independent UK company to do so. Raleigh offers a full
package of services to its customers through its three separate
coating lines (one solvent based, one silicone gel based, and one
specialist industrial coating line), its pilot facility, two
slitting lines, converting lines as well as a stand-alone
perforation unit all of which have significant capacity
headroom.
Raleigh provides tailor-made solutions for its blue-chip
customer base, which includes many of the major woundcare
manufacturers and other specialist manufacturers and suppliers in
the healthcare sector, and has a strong pipeline of innovative
developments, which will ensure its continued growth as a leading
player in the woundcare and bio-diagnostic sectors. Raleigh employs
31 full time staff in its modern, recently upgraded, manufacturing
facilities with medical class '7' clean rooms in Eccleshall,
Staffordshire. Raleigh is a subsidiary of Apollo Chemicals Group
Limited.
Raleigh delivered revenue of GBP3.9 million and operating profit
of GBP0.8 million in the six months ended 31 October 2020. In its
previous financial year to 30 April 2020, Raleigh reported revenue
of GBP4.4 million and made an operating loss of GBP0.3 million. As
at 30 April 2020 it had net assets of c. GBP1.2 million. The
Acquisition is expected to be earnings enhancing in 2021.
Commenting on the acquisition, Chris Meredith, CEO of AMS, said:
"We are delighted to add Raleigh to the Group. We have been looking
for synergistic technologies that add value to our woundcare
business and this acquisition strengthens our position and product
offering in that sector significantly. Having outsourced silicone
coating and perforation for some time, we are pleased to bring this
capability in-house. Raleigh has also played an important part in
improving the design of our LiquiBand(R) XL mesh which we see as an
important part of our continued US growth strategy. Raleigh's
expertise in other sectors such as bio-diagnostic strips also opens
up further new commercial opportunities for the Group. We look
forward to welcoming the Raleigh team to the Group to build on
their commercial success and leverage their development
pipeline."
Jonathan Saunders, Chairman of Apollo Chemicals Group Limited
and majority shareholder of Raleigh, said: "The synergies between
AMS and Raleigh make this a very positive and exciting time for all
at Raleigh. We have invested in developing technologies over the
last five years for the woundcare and bio-diagnostic markets and
have a great team which has worked hard to establish our reputation
for excellence, service and quality within these specialist fields.
The medical sector does not naturally fit with Apollo Chemicals'
expertise and so I am delighted to say AMS provides an excellent
opportunity for both businesses to complement each other, provide
enhanced product offerings and accelerate our joint success. We
look forward to watching the business go from strength to
strength."
- End -
For further information, please visit www.admedsol.com or
contact:
Advanced Medical Solutions Group plc Tel: +44 (0) 1606
545508
Chris Meredith, Chief Executive Officer
Eddie Johnson, Chief Financial Officer
Consilium Strategic Communications Tel: +44 (0) 20 3709
5700
Mary-Jane Elliott / Matthew Neal / Olivia AMS@consilium-comms.com
Manser
Investec Bank PLC (NOMAD & Broker) Tel: +44 (0) 20 7597
5970
Daniel Adams / Gary Clarence / Patrick
Robb
About Advanced Medical Solutions Group plc
AMS is a world-leading developer and manufacturer of innovative
and technologically advanced products for the global surgical and
woundcare markets, focused on quality outcomes for patients and
value for payers. AMS has a wide range of surgical products
including tissue adhesives, sutures, haemostats, and internal
fixation devices, which it markets under its brands LiquiBand(R) ,
RESORBA(R) , and LiquiBandFix8(R) . AMS also supplies wound care
dressings such as silver alginates, alginates and foams through its
ActivHeal(R) brand as well as under white label. In 2019, the Group
made two acquisitions: Sealantis, an Israeli medical device company
with a patent-protected sealant technology platform; and
Biomatlante, an established developer and manufacturer of
innovative surgical biomaterial technologies based in France.
AMS's products, manufactured in the UK, the Netherlands,
Germany, France, the Czech Republic and Israel, are sold globally
via a network of multinational or regional partners and
distributors, as well as via AMS's own direct sales forces in the
UK, Germany, France, the Czech Republic and Russia. The Group has
R&D innovation hubs in the UK and Germany, Israel and France.
Established in 1991, the Group has approximately 700 employees. For
more information, please see www.admedsol.com .
About Raleigh Adhesive Coatings Ltd
Based in Staffordshire, England, Raleigh is a leading coater and
converter of materials predominately for woundcare and
bio-diagnostics products. Raleigh provides a lab bench to final
production service for small to large scale coating and converting
production runs. Raleigh operates to the highest standards with ISO
14644 Class 7 clean room facilities and complete traceability
throughout the whole process. For more information please see
https://www.raleighcoatings.com
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