19th Jun 2020 14:31
(Alliance News) - Inspiration Healthcare Group PLC on Friday said it has agreed to buy SLE Ltd in a cash and stock deal worth GBP18.0 million, as part of the company's strategy to become a "global leader" in the field of neonatology.
Neonatology is a sub-speciality of paediatrics that consists of the medical care of newborn infants, especially the ill or premature newborn.
The medical technology company also said that it will raise GBP16.5 million through share placing and subscription of 25.4 million shares at 65 pence each, a 1.5% discount to 66p stock price on Thursday.
In addition, Inspiration has decided to launch an open offer of up to 767,617 shares at 65p price and has secured a new GBP5.0 million credit facility with HSBC.
Shares in Inspiration Healthcare were up 4.9% at 69.25 pence each in London on Friday afternoon.
The Crawley, England-based company it will buy SLE, a manufacturer of ventilators for neonatal intensive care, for GBP16.2 million in cash and GBP1.8 million in shares. The cash part of the deal will be funded by the company's equity capital raise and HSBC loan.
The SLE buyout is expected to be earnings enhancing in the short to medium term for Inspiration Healthcare. In the year to July 31, SLE generated GBP16.1 million in revenue and GBP1.6 million in earnings before interest, tax, depreciation and amortisation.
Inspiration Healthcare Chief Executive Neil Campbell said: "Bringing the two companies together will significantly enhance our position as a leader in the global neonatal intensive care sector and deliver a number of benefits that include broadening the Group's product portfolio, an enlarged global distribution network, added manufacturing facilities and significantly increasing revenues and earnings."
By Tapan Panchal; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Inspiration Hlt