AMS2 Dec 2011 07:27
Placing of 47,236,112 new Ordinary Shares in AMS at a price of 72 pence per share to raise approximately £34.0 million in connection with the proposed acquisition of RESORBA Wundversorgung GmbH & co. KG
The Board of AMS (AIM: AMS), the global medical technology company, is pleased to announce today the proposed acquisition of RESORBA, a long established wound care and wound closure business headquartered in Germany for a total cash consideration of €63.8 million (approximately £55 million) on a debt-free, cash-free basis to be paid, in full, on completion. To fund the acquisition, the Board of AMS also announces today a non pre-emptive institutional placing (the "Placing") of 47,236,112 new Ordinary Shares in AMS (the "Placing Shares") at a price of 72 pence per Placing Share (the "Placing Price"), to raise approximately £34.0 million (£30.5 million net of acquisition and placing expenses), together with a €25.0 million term loan facility.
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The acquisition of RESORBA fulfils all of AMS's strategic acquisition criteria and provides a number of commercial synergy opportunities as it:
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Broadens the Group's technology portfolio in both wound care and wound closure;
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Provides direct sales capability into the operating room in Germany, Czech Republic and Russia;
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Provides significant cross-selling opportunities and product development potential;
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Provides access to a new market - oral surgery;
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Leverages AMS's global distribution network and regulatory expertise to bring existing RESORBA products to new markets; and
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Provides development opportunities in the short, medium and long term
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RESORBA is well known to AMS as it currently distributes its LiquiBand® wound closure product and has done for more than eight years
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Acquisition is expected to be earnings per share enhancing in the twelve months ending 31 December 20121
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Senior management of RESORBA will be joining the Enlarged Group and investing a material proportion of their net proceeds from the Acquisition in AMS shares
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Significant shareholder support for the Placing