Woundcare firm sold in £22m deal

Staffordshire-based Raleigh Adhesive Coatings, the woundcare and bio-diagnostics coatings business, has been sold in a £22m deal to Advanced Medical Solutions Group, the AIM listed surgical and advanced woundcare specialist company.

Raleigh employs 31 staff in its manufacturing facilities in Eccleshall. It is a subsidiary of Apollo Chemicals Group.

Jonathan Saunders, chairman of Apollo Chemicals Group and majority shareholder of Raleigh, said: “The synergies between AMS and Raleigh make this a very positive and exciting time for all at Raleigh. We have invested in developing technologies over the last five years for the woundcare and bio-diagnostic markets and have a great team which has worked hard to establish our reputation for excellence, service and quality within these specialist fields.

“The medical sector does not naturally fit with Apollo Chemicals’ expertise and so I am delighted to say AMS provides an excellent opportunity for both businesses to complement each other, provide enhanced product offerings and accelerate our joint success. We look forward to watching the business go from strength to strength.”

Chris Meredith, CEO of AMS, said: “We are delighted to add Raleigh to the Group. We have been looking for synergistic technologies that add value to our woundcare business and this acquisition strengthens our position and product offering in that sector significantly. Having outsourced silicone coating and perforation for some time, we are pleased to bring this capability in-house. Raleigh has also played an important part in improving the design of our LiquiBand® XL mesh which we see as an important part of our continued US growth strategy. Raleigh’s expertise in other sectors such as bio-diagnostic strips also opens up further new commercial opportunities for the Group.

“We look forward to welcoming the Raleigh team to the Group to build on their commercial success and leverage their development pipeline.”

Bracebridge Corporate Finance has advised the shareholders of Raleigh.

Andy Moore, managing director of Bracebridge Corporate Finance, said: “We are delighted to have advised on this transaction, adding to our extensive track record in the healthcare sector. It represents an exciting strategic acquisition for AMS and at the same time an excellent result for the shareholders of Raleigh.”

Legal advice to the shareholders of Raleigh was provided by Mills & Reeve in Birmingham, led by Peter McLintock.