The Medical House in £16.5m takeover

YORKSHIRE needle-free injection kit specialist The Medical House has agreed to be bought by healthcare specialist Consort Medical for £16.5m.

Consort has offered 27.5p in cash for each TMH share. TMH’s shares closed at 26p on Wednesday.

Ian Townsend, chairman of Sheffield-based TMH, said: “Like many small companies, the market has not recognised the full value of The Medical House and this offer provides a more certain investment outcome for shareholders in an uncertain economic environment.

“We also believe that the technology and staff will benefit from this deal as well as our partners who will undoubtedly benefit from the manufacturing expertise and overall standing within the marketplace of Consort Medical.”

Consort Medical specialises in medical technology for drug delivery.

Its chief executive, Jonathan Glenn, said: “The combination of The Medical House’s expertise in auto-injector technology with Consort Medical’s world leading design for manufacture capabilities and expertise in high volume precision manufacturing, will significantly expand our drug delivery offering to our global pharmaceutical customers.

“The expanding range of recently launched and to be launched biological drugs should ensure strong sustainable growth for this segment of our market.”

Mr Townsend said the offer represented a “good premium” and the board was recommending it to its shareholders.

The offer represents a 93% premium to the 14.25p closing price on August 11, the day before The Medical House said it had received a preliminary approach.

Consort Medical has received irrevocable undertakings to accept the offer from shareholders owning 35.2% of the shares.
 
TMH said last week that it was confident it would sign more contracts to supply its products and develop further innovations.

The company saw pre-tax profits increase from £319,000 to £585,000 for the six months ended June 30.