Chesire’s Advanced Medical buys €141m Peters Surgical

Winsford, Chesire-based tissue healing technologies firm Advanced Medical Solutions Group plc (AMS) has entered into an agreement for the proposed acquisition of France-based Peters Surgical for up to €141.4 million in cash.

Advanced Medical Solutions also published 2023 results showing its revenue increased by 2% to £126.2 million, adjusted profit before tax fell 9% to £25.9 million, and proposed full year dividend per share is up 10% to 2.36p.

AMS said Peters Surgical is one of the leading European providers of speciality surgical products, generating revenues of €84 million in the 12 months to December 31, 2023.

The total maximum cash consideration payable is €141.4 million — approximately £120.8 million.

There would be an initial cash payment of €132.5 million “payable on completion on a debt-free, cash-free basis” and an 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.”

AMS CEO Chris Meredith said: “Peters Surgical is an ideal fit for AMS in terms of its complementary expertise, global reach and potential for synergies with AMS’s existing portfolio.

“As well as broadening our portfolio, AMS will benefit from the shared capabilities of the two companies, including direct sales channels, distribution networks, and manufacturing locations.

“We’re thrilled to have secured such a transformational deal which aligns perfectly with our acquisition strategy.”

Peters Surgical CEO Thierry Herbreteau said: “Peters Surgical has grown into one of the leading European providers of speciality surgical products thanks to the hard efforts of all the team and the support of Eurazeo.

“We are excited about the opportunities that this combination with AMS, a world leading specialist in tissue-healing technologies, and the benefits that the transaction can bring to physicians, patients and employees.”

On the company’s results AMS CEO Meredith said: I am very pleased with the progress we made in 2023 with a number of key initiatives setting a strong foundation for growth for the next five years.

“The recently signed US distribution agreements are already having a positive impact on the LiquiBand franchise. Also, market feedback through our new US partner for LIQUIFIX validates the confidence we have in the commercial potential for this unique product.

“Outside the US, we continue to make excellent progress as we strengthen our position in established markets and drive growth through geographic expansion.

 “The acquisition of Peters Surgical is a transformational step in the history of AMS. The expansion of our portfolio while leveraging the direct sales, distribution network, R&D capability and manufacturing base of both businesses will transform the group into a major player in the field of tissue-healing.

“The group has never been in such a strong position given the quality of our products and breadth of our portfolio. As a result, we are also increasing our dividend, demonstrating our commitment to drive shareholder value.

“I am extremely proud of the AMS employees who have worked so hard to get us to this point and I look forward to working closely with our new colleagues at Peters Surgical and Syntacoll and our other partners as we embark on this exciting new phase of the business.”