Scapa acquires wound management manufacturer Systagenix

2nd Oct 2018 09:09

(Sharecast News) - Scapa Group has wrapped up its £31m cash acquisition of Systagenix Wound Management Manufacturing and its operations, sterilisation services, warehouse facilities and R&D and regulatory support functions.Systagenix's Gargrave facility will now serve as Scapa's European "centre of excellence" for healthcare, significantly enhancing its capabilities, services and footprint, as well as adding gamma sterilisation to the firm's capabilities, providing a unique value proposition and additional flexibility.The AIM-listed outfit funded the transaction from its existing cash reserves and bank facilities.In addition to the acquisition, Scapa and Acelity entered into an exclusive five-year manufacturing and supply agreement for Systagenix products that are currently manufactured in the Gargrave facility, with immediate effect.Scapa expects pro forma revenues from the agreements to be approximately £37m per year on a statutory basis.Chief executive Heejae Chae, said: "The transaction marks a milestone in our healthcare journey from a material supplier to a global healthcare company. It bridges the final gaps in our value proposition in capabilities, services and footprint."As of 0905 BST, Scapa shares had inched forward 0.36% to 449.80p.