Acquisition of Corpura
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For Immediate release |
1 October 2009 |
Advanced Medical Solutions Group plc
('AMS' or the 'Group')
Acquisition of Corpura B.V
Winsford, UK: Advanced Medical Solutions Group plc (AIM: AMS), the global medical technology company, today announces that it has acquired the remaining 50.6% of the shares in Corpura B.V. from Recticel, its Joint Venture partner, for a consideration of €1.5 million plus €0.8 million to repay funding of working capital to Recticel. As a result AMS now owns 100% of Corpura, a profitable manufacturer of hydrophilic polyurethane foam.
The consideration will be paid in cash in four instalments over the next 12 months.
Hydrophilic polyurethane foam is one of the largest and fastest growing segments of advanced woundcare, currently estimated to be worth $900 million and growing at 20% per annum.
Established in 2004, Corpura develops and produces hydrophilic polyurethane foam for a broad range of medical companies at a dedicated R & D and manufacturing facility in Etten Leur, The Netherlands. It currently supplies AMS with polyurethane foam for inclusion into its advanced woundcare dressings.
On 19th May 2008, AMS announced that it had reached agreement with Recticel, the Belgium-based polyurethane foam manufacturer, to form a Joint Venture relating to Corpura. As a result of this transaction, which became effective on 30 May 2008, AMS acquired 49.4% of the shares in the Joint Venture for a consideration of €1.6 million plus €0.9 million of funding.
The strategic rationale behind entering the Joint Venture and for now completing the acquisition of Corpura, is that it provides AMS with another platform technology for delivering actives/anti-microbials to prevent infection and help accelerate wound healing utilising the Group's R & D capability and intellectual property portfolio. A number of such developments are currently underway and in August 2009 the Group announced that it had received 510(k) clearance from the FDA to market a silver polyurethane anti-bacterial foam dressing in the US.
Employing 15 people, for the year ended 31 December 2008, Corpura's revenue was €3.3 million, earnings before interest, depreciation and amortisation (EBITDA) was €775,000 and the reported profit before tax was €320,000. The book value of the gross assets being acquired as at 31 December 2008 was €2.6 million. Corpura was affected by customer destocking in the first half of 2009 and its unaudited accounts for the half year ended 30 June 2009 resulted in an EBITDA of €15,000. This destocking effect has worked through the system and the business is expected to show a much stronger performance in the second half of 2009.
Commenting on this announcement, Dr. Don Evans, Chief Executive Officer of Advanced Medical Solutions, stated:
'Having validated the strategic rationale for entering the Joint Venture last year, I am pleased that we have been able to complete this transaction which provides us with an excellent business, in line with AMS's existing commercial model, and also gives us a more powerful technology position in a key growth area in advanced woundcare.'
For further information, please contact:
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Advanced Medical Solutions Group plc |
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Don Evans, Chief Executive Officer Mary Tavener, Finance Director |
Tel: +44 (0) 1606 545508 |
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Buchanan Communications |
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Mark Court / Stasa Filiplic |
Tel: +44 (0) 20 7466 5000 |
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Investec Bank plc |
Tel: +44 (0) 20 7597 5970 |
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Tim Pratelli / Daniel Adams |
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Notes to Editors:
Advanced Medical Solutions develops and manufactures products for the $15 billion global woundcare market.
Founded in 1991 and quoted on AIM, Advanced Medical Solutions is focused on the design, development and manufacture of innovative products for advanced woundcare and wound closure.
The advanced woundcare products are based on the moist wound healing principle. AMS uses its in-house technology to provide a vertically integrated 'one stop shop' for all categories of moist wound healing products. The Company has the capability to move a product from design and development through to production and delivery for distribution and sale into customer markets.
AMS' technology in cyanoacrylate based tissue adhesives is used for the closure of small cuts and trauma wounds through to large surgical incisions, and also for protecting or sealing skin to prevent breakdown or infection.
AMS' products which currently serve the majority of the key global markets are sold either direct or through strategic partners and distributors.
This information is provided by RNS
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