AMS buys out JV partner

WOUNDCARE specialist Advanced Medical Solutions has bought out its partner’s stake in a business that makes foam for wound dressings.

AIM-listed AMS, which uses silver and seaweed in its range of products, told shareholders it had agreed to pay £1.3m in cash for 50.6% of Holland-based Corpura from the Belgian group Recticel.

It will pay a further £730,000 to repay working capital funded by Recticel.

AMS, based in Winsford, said Corpura was a profitable business operating in a market worth around £550m and growing at 20% a year. It bought into the business in May last year for £1.4m and £800,000 in funding.

Corpura, which employs 15 people, reported a pre-tax profit of £290,000 on sales of £3m during the year to December, 2008.

Chief executive Dr Don Evans said: “Having validated the strategic rationale for entering the joint venture last year, I am pleased that we have been able to complete this transaction which provides us with an excellent business, in line with AMS’s existing commercial model, and also gives us a more powerful technology position in a key growth area in advanced woundcare.”