Advanced Medical Solutions Group plc (AMS.L), on Wednesday, said it has agreed to the proposed acquisition of Peters Surgical, a global provider of specialty surgical sutures, mechanical haemostasis, and internal cyanoacrylate devices.
The total maximum cash consideration payable is €141.4 million structured as follows: Initial cash payment of €132.5 million payable on completion on a debt-free, cash-free basis; Earnout of up to €8.9 million payable on delivery of US regulatory approvals, achievement of FY24 revenue and gross margin targets, and satisfying certain inventory and tax conditions.
It is expected that the Acquisition will be completed by the end of June 2024, subject to the completion of the required French Foreign Direct Investment screening. The Directors are confident that this screening will be approved without any conditions. No other regulatory approvals are anticipated. The cash consideration will be financed through a new debt facility, which will consist of a £60 million term loan facility and a £30 million revolving credit facility. The balance of the consideration will be funded by the Group's cash.
The Directors believe that under AMS ownership, excluding synergies, Peters Surgical should deliver organic revenue growth of more than 4% at a gross margin of about 55% and an adjusted EBITDA margin of about 13%.
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