Regulatory Approval for acquisition

Winsford, UK: Advanced Medical Solutions Group plc (AIM: AMS), a world-leading specialist in tissue-healing technologies, is pleased to announce that following its announcement of the proposed acquisition of Peters Surgical on 13 March 2024, it has now received regulatory approval to complete the acquisition of Peters Surgical, following the successful French Foreign Direct Investment screening process.

The acquisition of Peters Surgical, one of the leading European providers of speciality surgical products will strengthen AMS's position as a leading global specialist in tissue repair and wound closure. With the addition of Peters Surgical and Syntacoll, AMS's consolidated surgical revenue for FY23 would have been almost double and the Business Unit would have represented nearly 80% of AMS Group revenues. The Board expects the transaction will deliver high single digit earnings accretion from FY25, excluding significant anticipated commercial and operational synergies. AMS will provide more detail on potential synergies in September, once the transaction and the integration project plan are complete. Peters Surgical generated revenues of €84 million in the twelve months to 31 December 2023.

Completion of the transaction will take place on 1 July 2024, triggering an initial cash payment of €132.5 million (approximately £113.2 million). An earnout of up to €8.9 million (approximately £7.6 million) would be payable in FY2025 on delivery of US suture 510(k) approvals, achievement of FY24 revenue and gross margin targets, and satisfying certain inventory and tax conditions as outlined in the announcement on 13 March 2024.

Chris Meredith, Chief Executive Officer of AMS, said: "We are delighted to have secured regulatory approval for this transformational acquisition. In anticipation of completion, we have been working closely with Peters Surgical to begin an extensive integration project, with a dedicated team now in place to manage the process which has confirmed our view of the quality of the Peters Surgical business, its complementarity with AMS's existing offering, as well as the enthusiasm and commitment of its staff. This transaction is a substantial step forward for AMS as we establish an enhanced portfolio of own-branded products, strengthen our direct sales capabilities and look to secure greater global traction in key markets."

Sam McLennan / Joe Weaving / Stephanie Cornish