Staffordshire medtech PuriCore agrees £16m deal to sell endoscopy business

THE parent of Staffordshire-based medtech PuriCore is to sell off one of its divisions in a deal worth more than £16m.

PuriCore, a global company focused on safe and effective protection against the spread of infectious pathogens, has conditionally agreed to sell the entire issued share capital of PuriCore International Ltd, its UK endoscopy business.

PuriCore, whose European headquarters is in Stafford, has agreed the deal with Medivator, itself the European subsidiary of US-based Cantel Medical. The deal is worth $26.9m in cash.

PuriCore said that following the deal it had initiated a comprehensive strategic review of the business to determine the best use of proceeds. Proposals include enhanced investment in the business plus a war chest to fund new acquisitions. It will also assess a potential return to shareholders.

During the financial year ended December 31, 2013, North Somerset-based PuriCore International generated revenue of almost £14m, with a pre-tax profit £1.25m.

Michael Ashton, PuriCore’s executive chairman, said: “The board sees the greatest prospects for future sustainable growth of the company through targeted expansion of our businesses in the supermarket retail and the health sciences segments.

“There are a number of options under consideration which include further leveraging of our core proprietary hypochlorous technology and strategic acquisitions that complement our existing businesses in these segments. We are currently engaged in a comprehensive strategic review to evaluate these opportunities.

“Against this backdrop we are delighted to announce this proposed cash sale of the endoscopy business that will provide us with the resources to accelerate our strategic plans. Whilst the UK-based endoscopy business has successfully evolved to supply products and services to hospitals in the UK, the vast majority of these do not rely on ourcore intellectual property and, as such, lack synergies with those in our other segments.”

The deal is subject to shareholder approval and a general meeting to be held on June 20 to vote on the proposals.

If agreed, it is thought the deal will complete before the end of the month.