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Synergy Health Acquisition of Leoni Studer Hard
Synergy Health acquires Leoni Studer Hard AG, Switzerland
Synergy Health (LSE: SYR), a leading global provider of outsourced sterilisation services to the medical device market and healthcare sector, announces the acquisition of Leoni Studer Hard AG from Leoni Group for a cash consideration of EUR 47.6 million (approx. £39.7 million), which will be funded out of existing debt facilities.
Leoni Studer Hard AG operates a gamma and X-ray facility in Däniken, Switzerland, providing irradiation sterilisation services to the medical device, pharmaceutical and packaging industries. The business is the only provider of these services in Switzerland. In the year ended 31 December 2011, Leoni Studer Hard AG recorded revenues of CHF 10.4 million (approx. £7.2 million), EBIT of CHF 3.7 million (approx. £2.6 million) and had gross assets of CHF 35.7 million (approx. £24.6 million). Sales through the X-ray facility are growing strongly and the cash consideration equates to a 7.7x EBITDA multiple.
The acquisition provides Synergy with access to the Swiss sterilisation market and expands its geographic presence in Europe, supported by our Allershausen and Radeberg facilities in Germany and Marseille and Marcoule (scheduled to open in October 2012) facilities in France. Synergy will also gain access to X-ray technology and specifically the intellectual property required to exploit the benefits of this new application in sterilisation and polymer modification. The X-ray technology also offers significant potential to expand our irradiation sterilisation services in territories where gamma irradiation is limited by licensing concerns or where it offers a more cost effective solution.
The acquisition is expected to be earnings enhancing in the first full year of ownership.
Richard Steeves, Chief Executive of Synergy Health, said:
"This acquisition further strengthens our position in Europe giving us access to the well developed, high value added medical device sterilisation and pharmaceutical market in Switzerland. Furthermore, we will have access to the intellectual property required to exploit the benefits of X-ray technology and particularly polymer modification, enabling us to expand the service offering to our healthcare customers."
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