Rea takes major stake in Surgical Innovations

ENTREPRENEUR Chris Rea, founder of AESSEAL, has invested £1.6m to take a major stake in Surgical Innovations Group.

The AIM-listed Leeds-based company, which develops innovative medical technology for use in keyhole surgery, said today Rea was buying 39.5m shares at 4p each to take an 8.9% stake in SI.

The founder of South Yorkshire-based AES Engineering, the holding company for several manufacturing and engineering businesses including AESSEAL, one of the world’s largest mechanical seals manufacturers, will also join the board of SI as a non-executive director.

Rea, who did not hold any shares in the company until this investment, has bought the shares at a price which represents a 17.9% discount to Friday’s closing mid-market price of 4.875p on AIM.

Doug Liversidge, non-executive chairman of SI, commented: “The involvement of Chris Rea with Surgical Innovations both as an investor and a board member will be a major asset for the company and a vote of confidence in its long term future.  Chris brings his immense experience of manufacturing and international business to the company, at a time when it has established a solid basis for growth.”

SI said that the funds raised will provide “additional working capital for the group’s strategy for growth and strengthen its ability to move rapidly and effectively into two key areas of minimally invasive surgery: the offering of a unique clinical solution for 3mm surgery and a resposable universal seal port access system that together support an enhancement in the group’s revenues per surgical procedure”.
 
Chris Rea OBE, who is aged 60, is the managing director of AESSEAL, the UK’s last remaining and the world’s fourth largest mechanical seal manufacturer.