CLOSING OF PETERS SURGICAL ACQUISITION

WINSFORD, UK: Advanced Medical Solutions Group plc (AIM: AMS), a premier innovator in the field of tissue-healing solutions, signed a deal for the intended purchase of Peters Surgical, a foremost international supplier of specialty surgical sutures, mechanical haemostasis, and internal cyanoacrylate devices.

The aggregate maximum monetary compensation is set at €141.4 million (around £120.8 million), allocated as follows:

• An upfront cash disbursement of €132.5 million (approximately £113.2 million), to be paid upon completion, assuming no debt or cash on the books.
• A contingent earnout payment of up to €8.9 million (about £7.6 million), contingent upon obtaining US regulatory consents, reaching fiscal year 2024 revenue and gross margin objectives, and meeting specific inventory and tax prerequisites.

Key Points:

• Peters Surgical stands as a top-tier European manufacturer of specialty surgical merchandise, with a revenue stream of €84.0 million for the year ending 31 December 2023.
• Amplifies AMS’s stature as a global frontrunner in tissue restoration and skin sealing, enhancing its product range.
• Offers substantial enduring cost and commercial synergies, such as augmented direct sales proficiency, territorial growth, and opportunities for product cross-selling.
• Anticipated to yield a high single-digit percentage increase in earnings in the first complete year post-acquisition, identified as FY25.
• The deal is slated for finalization by the end of June 2024.
• The anticipated post-acquisition pro forma leverage is approximately 1.5 times, with a projection for a significant reduction subsequently.

Chris Meredith, Chief Executive Officer of AMS, said: “Peters Surgical is an ideal fit for AMS in terms of its complementary expertise, global reach and potential for synergies with AMS’s existing portfolio. As well as broadening our portfolio, AMS will benefit from the shared capabilities of the two companies, including direct sales channels, distribution networks, and manufacturing locations. We’re thrilled to have secured such a transformational deal which aligns perfectly with our acquisition strategy.”

Liz Shanahan, Chair of AMS, said: “AMS has successfully delivered organic and M&A growth via strategic bolt-on deals over the past few years. Today sees us deliver a much larger transformative acquisition according to plan and this significantly expands and strengthens the Group’s product offering and global reach. This deal puts us on a very strong footing and the Board is extremely confident in the Group’s future outlook.” 

Thierry Herbreteau, Chief Executive Officer of Peters Surgical, said: “Peters Surgical has grown into one of the leading European providers of speciality surgical products thanks to the hard efforts of all the team and the support of Eurazeo. We are excited about the opportunities that this combination with AMS, a world leading specialist in tissue-healing technologies, and the benefits that the transaction can bring to physicians, patients and employees.”

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