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Scapa swallows up Texas-based BioMed Laboratories
Scapa Group has acquired Texas-based BioMed Laboratories, it announced on Monday, for an initial cash consideration of $19m with a further cash consideration of up to $13m payable depending on the acquisition's performance in calendar years 2018 and 2019.
The AIM-traded firm said that as at 31 December, the unaudited gross assets acquired were $2.5m.
Revenue and underlying adjusted EBITDA for the 2017 calendar year were $10.2m and$1.4m, respectively.
The acquisition was expected to be earnings-enhancing in the first full year, and would be funded from existing cash reserves and bank facilities.
Scapa described BioMed as a "leading developer and manufacturer" of gels, creams, lotions, liquids, powders and hot filled wax based products in the over-the-counter, wound care and skin care markets.
BioMed's manufacturing facility was ISO certified, and compliant with FDA cGMP, Health Canada and EU regulatory requirements.
The Scapa board said it believed the acquisition of BioMed would bring a number of advantages to the business, including allowing the company to better serve the ancillary accessories market for advanced wound care and ostomy segments.
It would also expands its turn-key value proposition in consumer wellness, including over-the-counter, and health and beauty, and offer the opportunity to leverage its global infrastructure to further drive BioMed's growth.
"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," said group chief executive Heejae Chae.
Roger Liebelt, CEO of BioMed, added that becoming a part of Scapa Healthcare's growing business was 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."