Scapa Group PLC Acquisition (8369I)
March 26 2018 - 1:00AM
UK Regulatory
TIDMSCPA
RNS Number : 8369I
Scapa Group PLC
26 March 2018
LEI No. 213800QIPVTK5ES5UU36
26 March 2018
Scapa Group plc
Acquisition of BioMed Laboratories LLC
Scapa Group plc ("Scapa") (AIM: SCPA) is pleased to announce
that it has acquired the share capital of BioMed Laboratories LLC
("BioMed"), based in Dallas, Texas. The purchase price comprises an
initial cash consideration of USD$19 million with a further cash
consideration of up to USD$13million payable depending on
performance in calendar years 2018 and 2019.
As at 31 December 2017, the unaudited gross assets acquired were
USD$2.5 million. Revenue and underlying adjusted EBITDA for the
year ended 31 December 2017 was USD$10.2 million and USD$1.4
million, respectively. The acquisition is expected to be earnings
enhancing in the first full year and will be funded from existing
cash reserves and bank facilities.
BioMed is a leading developer and manufacturer of gels, creams,
lotions, liquids, powders and hot filled wax based products in the
OTC, wound care and skin care markets. BioMed's manufacturing
facility is ISO certified and complies with FDA cGMP, Health Canada
and EU regulatory requirements.
Background to the Acquisition
Scapa's strategy in healthcare is to become the strategic
outsource partner of choice for our global customer base through
our offering of skin friendly turn-key solutions across the
advanced wound care, consumer wellness and medical devices markets.
We believe that we are well positioned to benefit from the
increasing trend towards outsourcing in the healthcare sector and
to increase our share of our customers' total spend.
BioMed is Scapa Healthcare's first investment in a non-adhesive
based capability and expands Scapa Healthcare's reach with our
existing customer base. Our broadened capabilities provide us with
increased value proposition and greater access to the advanced
wound care and ostomy accessories markets as well as enhancing our
solutions within the consumer wellness sector. BioMed's management
team will remain in the business and strengthen Scapa Healthcare's
management team.
Benefits of the Acquisition
The Board believes the acquisition of BioMed brings the
following advantages to Scapa:
- Allows Scapa Healthcare to better serve the ancillary
accessories market for advanced wound care and ostomy segments
- Expands our turn-key value proposition in consumer wellness,
including OTC and Health & Beauty
- Offers the opportunity to leverage Scapa Healthcare's global
infrastructure to further drive BioMed's growth
- The acquisition is expected to be earnings enhancing in the
first full year in the enlarged Group
Commenting on the acquisition, Heejae Chae, Group Chief
Executive Officer said;
"The acquisition of BioMed, which further enhances our
capabilities and takes us beyond the adhesive based value chain, is
another key step in the execution of our healthcare strategy to be
the single source for turn-key solutions to our global healthcare
customers."
Roger Liebelt, CEO of BioMed, commented:
"Becoming part of Scapa Healthcare's growing business is an
exciting step for BioMed. It is evident that Scapa values our
strong foundation and valuable relationships with our customers and
employees, which have been carefully considered throughout this
process. I am confident that Scapa will build upon our shared
principles to create greater value for customers."
For further information:
Scapa Group plc Tel: 0161 301 7430
Heejae Chae - Chief Executive
Graham Hardcastle - Finance
Director
Numis Securities Limited
(Nominated Adviser and Tel: 020 7260 1000
Joint Broker)
Mark Lander/Richard Thomas
Berenberg Tel: 020 3207 7800
(Joint Broker)
Chris Bowman
Weber Shandwick Financial Tel: 0207 067 0000
PR
Nick Oborne
This information is provided by RNS
The company news service from the London Stock Exchange
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