Synergy Health plc Acquires Bioster SpA and associated companies
Synergy Health plc (LSE: SYR), a leading global provider of outsourced sterilisation services to the medical device market and healthcare sector, is pleased to announce the acquisition of Bioster S.p.A. and associated companies ('Bioster Group') for a cash consideration of €29.0 million (£23.6 million)on a cash and debt free basis. The acquisition will be funded out of Synergy's existing debt facilities. Completion mechanics are expected to be fulfilled in the next few days.
Bioster Group operates ethylene oxide and electron beam sterilisation facilities in Italy, Slovakia, and the Czech Republic, providing sterilisation services to the medical device, pharmaceutical and packaging industries. In addition, it operates a hospital sterilisation services ('HSS') business in Italy.
The acquisition strengthens Synergy's capacity offering in Europe to its customers in two of its core technologies (ethylene oxide and electron beam). This will complement Synergy's network of Applied Sterilisation Technologies ('AST') facilities in Europe (in Germany, Switzerland, France and the Netherlands) with presence in the Southern and Eastern European markets.
In the year ended 31 December 2013, Bioster Group recorded revenues of EUR 20.2 million (£16.4 million), and underlying EBIT of EUR 2.6 million (£2.1 million). The business had gross assets of €24.8 million (£20.2 million), and the cash consideration equates to a 6.2x EBITDA multiple. The acquisition is expected to be earnings enhancing in the current financial year.
Dr Richard Steeves, Group CEO, said:
"This acquisition further strengthens our position in Europe giving us broader geographical access to the medical device and pharmaceutical sterilisation markets in Southern and Eastern Europe. We are looking forward to working with the staff and management of the Bioster Group to build on their reputation for delivering service excellence, and looking forward to expanding the partnership with their customers."