Business
Proposed Acquisition of Vio Holdings and Placing
Proposed Acquisition of Vio Holdings and Placing.
About this update from Inspiration Healthcare Group Plc
[{"type":"text","content":"\n \nRNS Number : 2812L Inspiration Healthcare Group PLC 05 September 2019 \n\nThe information contained within this announcement (the \"Announcement\") is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this Announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.\n \n5 September 2019\n \nInspiration Healthcare Group plc\n(\"Inspiration Healthcare\" or the \"Company\")\n \nProposed Acquisition of Vio Holdings Limited\nProposed Placing to raise £4.25 million\nNotice of General Meeting\n \n \nInspiration Healthcare Group plc (AIM:IHC), the global medical technology company, is pleased to announce that it has today entered into a conditional agreement to acquire the entire issued share capital of Vio Holdings Limited, the holding company of VIOMEDEX Limited (\"VIOMEDEX\"), for an aggregate consideration of £4.0 million on a cash free debt free basis (the \"Acquisition\").\n \nVIOMEDEX, designs, manufactures and supplies single use respiratory products and sterile medical consumables, principally for the respiratory care market. VIOMEDEX is the wholly owned trading subsidiary of Vio Holdings Ltd, which is being acquired by Inspiration Healthcare. VIOMEDEX's products are sold across the world through a distribution network built over the last 40 years. Of their OEM partners, Inspiration Healthcare is their biggest, accounting for more than 60 per cent. of total turnover. Based on unaudited proforma financial statements for the year ended 31 March 2019, VIOMEDEX generated EBITDA of £0.7 million from revenues of £2.5 million.\n \nBackground to and Strategic Rationale for the Acquisition\nThe Directors believe that the Acquisition will: \n· improve margins on Inspiration Healthcare's products by retaining sub contract manufacturers' margins;\n· add expertise in manufacturing through the retention of key management within the business and facilitate the transfer of new ideas to manufacturing process reducing the time taken to introduce new products;\n· leverage Inspiration Healthcare's well-established route to market, as well as its sales and market...