Scapa Group in £31m acquisition of wound care specialist

Scapa Group has announced the £31m acquisition of wound care company Systagenix Wound Management Manufacturing, an Acelity Company.

The Ashton-under-Lyne based group, which is a global specialist in adhesive products for the healthcare and industrial sectors, revealed it is paying cash for the Systagenix, subject to conditions.

Systagenix is a global leader in advanced wound care, developing and marketing therapeutic solutions and supplying more than 20 million advanced wound dressings per month to more than 75 countries.

Its long standing commitment to skin and wound care began with innovative wound care treatments developed by the experienced team of R&D scientists at the Gargrave Centre of Excellence for Wound Healing in North Yorkshire, since 1934.

Systagenix Wound Management Limited and the Systagenix Brand will remain part of Acelity.

Scapa Group said Systagenix’s manufacturing operations, sterilisation services, warehouse facilities and the R&D and regulatory support functions in Gargrave will be acquired as part of the deal.

In addition, Scapa has also entered into a five-year exclusive manufacturing supply agreement with Acelity for Systagenix advanced wound care products, which expands Scapa’s existing partnership with Acelity.

The addition of the well-invested 335,000 squ ft Gargrave site will position Scapa as one of the leading global B2B manufacturers of advanced wound care products.

The site will significantly enhance Scapa’s capabilities, services and footprint.

Scapa said the terms of its five-year exclusive agreement with Acelity will come into effect from the closing of the acquisition, which is expected to be on or around October 1.

Commenting on today’s announcement, Scapa Group chief executive Heejae Chae said: “The transaction marks a milestone in our healthcare journey from a material supplier to a global healthcare company.

“It bridges the final gaps in our value proposition in capabilities, services and footprint.

“The Gargrave facility will serve as our European centre of excellence with its state-of-the-art manufacturing facility and significant innovation and development capability.

“Additionally, the transaction will further strengthen our strategic relationship with Acelity by supporting its strategy for continued growth as the leading wound care company in the world.”

In March this year AIM-listed Scapa Group bought American company BioMed Laboratories for £25m.

Texas-based BioMed is a leading developer and manufacturer of gels, creams, lotions, liquids, powders and hot filled wax based products in the OTC (over the counter), wound care and skin care markets.

In September, 2017, Scapa bought the entire share capital of Market Industries, Controlled Environment Equipment Corp and CMark Films for £7.68m.