Regulatory Approval for acquisition

27 June 2024

Advanced Medical Solutions Group plc

(“AMS” or the “Group”)

Regulatory approval for acquisition of Peters Surgical

~ Transformational transaction to be completed 1 July 2024 ~

Winsford, UK: Advanced Medical Solutions Group plc (AIM: AMS), a world-leading specialist in tissue-healing technologies, is pleased to announce that following its announcement of the proposed acquisition of Peters Surgical on 13 March 2024, it has now received regulatory approval to complete the acquisition of Peters Surgical, following the successful French Foreign Direct Investment screening process. 

The acquisition of Peters Surgical, one of the leading European providers of speciality surgical products will strengthen AMS’s position as a leading global specialist in tissue repair and wound closure. With the addition of Peters Surgical and Syntacoll, AMS’s consolidated surgical revenue for FY23 would have been almost double and the Business Unit would have represented nearly 80% of AMS Group revenues. The Board expects the transaction will deliver high single digit earnings accretion from FY25, excluding significant anticipated commercial and operational synergies. AMS will provide more detail on potential synergies in September, once the transaction and the integration project plan are complete. Peters Surgical generated revenues of €84 million in the twelve months to 31 December 2023.

Completion of the transaction will take place on 1 July 2024, triggering an initial cash payment of €132.5 million (approximately £113.2 million). An earnout of up to €8.9 million (approximately £7.6 million) would be payable in FY2025 on delivery of US suture 510(k) approvals, achievement of FY24 revenue and gross margin targets, and satisfying certain inventory and tax conditions as outlined in the announcement on 13 March 2024.

Chris Meredith, Chief Executive Officer of AMS, said: “We are delighted to have secured regulatory approval for this transformational acquisition. In anticipation of completion, we have been working closely with Peters Surgical to begin an extensive integration project, with a dedicated team now in place to manage the process which has confirmed our view of the quality of the Peters Surgical business, its complementarity with AMS’s existing offering, as well as the enthusiasm and commitment of its staff. This transaction is a substantial step forward for AMS as we establish an enhanced portfolio of own-branded products, strengthen our direct sales capabilities and look to secure greater global traction in key markets.”   

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About Advanced Medical Solutions Group plc

AMS is a world-leading independent developer and manufacturer of innovative tissue-healing technology, focused on quality outcomes for patients and value for payers. AMS has a wide range of surgical products including tissue adhesives, sutures, haemostats, internal fixation devices and internal sealants, which it markets under its brands LiquiBand®, RESORBA®, LiquiBandFix8®, LIQUIFIX™ and Seal-G®. AMS also supplies wound care dressings such as silver alginates, alginates and foams through its ActivHeal® brand as well as under white label. Since 2019, the Group has made six acquisitions: Sealantis, an Israeli developer of innovative internal sealants; Biomatlante, a French developer and manufacturer of surgical biomaterials, Raleigh, a leading UK coater and converter of woundcare and bio-diagnostics materials, AFS Medical, an Austrian specialist surgical business, Connexicon, an Irish tissue adhesives specialist and Syntacoll a German specialist in collagen-based absorbable surgical implants.

AMS’s products, manufactured in the UK, Germany, France, the Netherlands, the Czech Republic and Israel, are sold globally via a network of multinational or regional partners and distributors, as well as via AMS’s own direct sales forces in the UK, Germany, Austria, the Czech Republic and Russia. The Group has R&D innovation hubs in the UK, Ireland, Germany, France and Israel. Established in 1991, the Group has more than 800 employees. For more information, please see www.admedsol.com.