Medical tech business swoops for £9m distributor
Medical technology company Surgical Innovations has acquired a Berkshire business, Elemental Healthcare, in a £9.4m deal.
Leeds-based Surgical, which designs and manufactures technology for minimally invasive surgery, has a long-standing relationship with Elemental, which has been an exclusive distributor of SI products in the UK since 2007.
The company is based in Hungerford, Berkshire, and employs 19 full-time staff, including 12 sales personnel. It specialises in supplying surgical devises to the NHS and UK private hospital groups, providing SI with a direct route to market.
Elemental was founded by Adam Power and David Marsh, and for the year to March 2017, returned revenue of £6.5m, with normalised pre-tax profits of £1.1m. They will become significant shareholders in the enlarged company and join the main board of Surgical.
SI is spending £9.38m on the acquisition, raising £5.5m to part-fund the acquisition in a share placing.
Nigel Rogers, executive chairman of SI, said: “The coming together of Surgical Innovations and Elemental is a natural progression for such a long-standing and interdependent partnership.
“Not only does this acquisition add further profitability and cash generation to the Group, but also provides SI with a direct route to the UK market through an experienced UK direct sales force.
“In addition, we look forward to utilising Adam and David’s commercial experience to prioritise new product innovation, and drive our marketing and business development in the UK and export markets.”
Adam Power, managing director of Elemental, said: “This deal brings together two highly complementary and long established businesses; both focused on providing the highest levels of personal service to the medical device sector.
“With our respective strengths and heritage, the two businesses have already enjoyed a long history of working together.
“We will look to build on our current expertise and reputation, sharing each other’s knowledge and experience. This creates a powerful and innovative new company with the aim of growing substantially, both through increasing organic growth and potentially through further acquisitions.”
