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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