2 oct

Mediq, international supplier of medical devices and pharmaceuticals, acquires all of the assets of US-based A-Med Health Care (A-Med). A-Med delivers mainly urological products to patients in California. Mediq has been active in the US with Byram Healthcare since 2008. This acquisition will enhance Byram's position in the large but fragmented US market, and establishes a leading position for Byram in the California home care market.

Strategic rationale
- Fits Mediq's strategy to further expand direct activities, to increase the scale of Byram's operations
- Establishes Byram as a leading player in the large California home care market
- Cost synergies in back-office processes.

Financial details

- The acquisition price is $ 38.2 million (€ 29.4 million), and represents an EBITDA multiple of approximately 7.5, excluding synergies. The multiple including synergies is around 6.
- Synergies of over $1 million as of 2014
- The acquisition will be financed from existing credit facilities
- Mediq's ROCE target of 15% pre tax is expected to be met per 2014

Since 1982, A-Med has delivered mainly urological products, like catheters, to patients primarily in California. The company has approximately 75 employees and is located in Huntington Beach (California). The company works closely together with doctors, rehabilitation facilities and specialty clinics. CEO Larry Thacker, who has been with the company for over 20 years, will stay with the business as Vice President Operations and Development for Byram.

Marc van Gelder, CEO Mediq: "Following the acquisition of Diabetes Specialty Center in the US earlier this year this is another logical step in the buy-and-build strategy we have been executing at our Direct and Institutional business. This acquisition greatly enhances our position on the US West Coast."

Marcel van den Broek, Executive vice-president Direct & Institutional: "We expect a smooth integration into our current operations. The business model of A-Med is very similar to that of Byram. I am glad that Larry Thacker will stay on to play an important role in the further development of Byram."

The transaction is not subject to antitrust approval, but is subject to the approval of the Pharmacy Board. Closing is expected before year end.

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