Bracebridge Corporate Finance advises on £22m sale of Raleigh Coatings to Advanced Medical Solutions Group plc

Bracebridge Corporate Finance has advised the shareholders of Raleigh Adhesive Coatings Limited, an independent woundcare and bio-diagnostics coatings business, on a £22 million sale to Advanced Medical Solutions Group plc (AIM: AMS), the AIM listed surgical and advanced woundcare specialist company.

Raleigh is one of the very few companies worldwide that offers acrylic and silicone gel contract coating for the woundcare market, and the only independent UK company to do so. Raleigh offers a full package of services to its customers through its three separate coating lines (one solvent based, one silicone gel based, and one specialist industrial coating line), its pilot facility, two slitting lines, converting lines as well as a stand-alone perforation unit all of which have significant capacity headroom.

Raleigh provides tailor-made solutions for its blue-chip customer base, which includes many of the major woundcare manufacturers and other specialist manufacturers and suppliers in the healthcare sector, and has a strong pipeline of innovative developments, which will ensure its continued growth as a leading player in the woundcare and bio-diagnostic sectors. Raleigh employs 31 full time staff in its modern, recently upgraded, manufacturing facilities with medical class ‘7’ clean rooms in Eccleshall, Staffordshire. Raleigh is a subsidiary of Apollo Chemicals Group Limited.

Jonathan Saunders, Chairman of Apollo Chemicals Group Limited and majority shareholder of Raleigh, said: “The synergies between AMS and Raleigh make this a very positive and exciting time for all at Raleigh. We have invested in developing technologies over the last five years for the woundcare and bio-diagnostic markets and have a great team which has worked hard to establish our reputation for excellence, service and quality within these specialist fields. The medical sector does not naturally fit with Apollo Chemicals’ expertise and so I am delighted to say AMS provides an excellent opportunity for both businesses to complement each other, provide enhanced product offerings and accelerate our joint success. We look forward to watching the business go from strength to strength.”

Andy Moore, Managing Director of Bracebridge Corporate Finance commented: “We are delighted to have advised on this transaction, adding to our extensive track record in the healthcare sector. It represents an exciting strategic acquisition for AMS and at the same time an excellent result for the shareholders of Raleigh”.

The acquisition will strengthen AMS’s position in the woundcare sector by bringing in-house specialist services of acrylic and silicone coating, perforation processing and some bulk materials converting capabilities which are currently outsourced. Silicone coating and perforation capabilities are particularly important to AMS as they are intrinsic to all modern advanced woundcare foam dressings. Raleigh is an existing key supplier, producing the coated adhesive mesh used in the new LiquiBand® XL device, an important part AMS’s continued US growth strategy and currently undergoing clinical trials. In addition, Raleigh’s expertise will allow the Company to enter the bio-diagnostic testing sector.

The acquisition brings strong synergies with AMS’s finished product offering, with the opportunity to increase the efficiency of the company’s woundcare manufacturing operations and provide entry points into new customers and markets, cross-selling of products and services as well as an R&D pipeline of new projects in the medical space.

Commenting on the acquisition, Chris Meredith, CEO of AMS, said: “We are delighted to add Raleigh to the Group. We have been looking for synergistic technologies that add value to our woundcare business and this acquisition strengthens our position and product offering in that sector significantly. Having outsourced silicone coating and perforation for some time, we are pleased to bring this capability in-house. Raleigh has also played an important part in improving the design of our LiquiBand® XL mesh which we see as an important part of our continued US growth strategy. Raleigh’s expertise in other sectors such as bio-diagnostic strips also opens up further new commercial opportunities for the Group. We look forward to welcoming the Raleigh team to the Group to build on their commercial success and leverage their development pipeline.”

The shareholders of Raleigh were advised by Bracebridge Corporate Finance, led by Andy Moore. Legal advice to the shareholders of Raleigh was provided by Mills & Reeve in Birmingham, led by Peter McLintock.

Andy Moore
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