Business
Proposed acquisition of Peters Surgical
Proposed acquisition of Peters Surgical.
About this update from Advanced Medical Solutions Group Plc
[{"type":"text","content":"\n\n13 March 2024\n \nAdvanced Medical Solutions Group plc\n(\"AMS\" or the \"Group\")\n \nProposed acquisition of Peters Surgical\n\n~ Transformational acquisition of Peters Surgical strengthens AMS's position as a leading global specialist in tissue repair and skin closure ~\n \n~ Acquisition expected to deliver high single-digit earnings accretion in the first full year ~\n \n \nWinsford, UK: Advanced Medical Solutions Group plc (AIM: AMS), a world-leading specialist in tissue-healing technologies, is pleased to announce it has entered into an agreement for the proposed acquisition of Peters Surgical, a leading global provider of specialty surgical sutures, mechanical haemostasis and internal cyanoacrylate devices.\n \nThe total maximum cash consideration payable is €141.4 million (approximately £120.8 million) structured as follows:\n· Initial cash payment of €132.5 million (approximately £113.2 million) payable on completion on a debt-free, cash-free basis\n· Earnout of up to €8.9 million (approximately £7.6 million) payable on delivery of US regulatory approvals, achievement of FY24 revenue and gross margin targets, and satisfying certain inventory and tax conditions\n \nHighlights\n· Peters Surgical is one of the leading European providers of speciality surgical products, generating revenues of €84.0 million in the twelve months to 31 December 2023\n· Strengthens AMS's position as a leading global specialist in tissue repair and skin closure, with a complementary product portfolio\n· Significant long-term cost and commercial synergies, including increased direct sales capabilities, geographic expansion and cross-selling opportunities\n· Expected to deliver high single digit earnings accretion in the first full year of ownership, being FY25\n· Transaction is expected to complete at the end of June 2024\n· Post-acquisition pro forma leverage of c.1.5x which is expected to reduce materially thereafter\n \nChris Meredith, Chief Executive Officer of AMS, said: \"Peters Surgical is an ideal fit for AMS in terms of its complementary expertise, global rea...