2nd Mar 2015 08:56
LONDON (Alliance News) - Shares in bonding materials supplier Scapa Group PLC were trading up on Monday morning after the company said it has struck a deal to buy UK-based First Water Ltd for up to GBP15.3 million and said it expects trading profit its financial year to be ahead of market expectations.
Scapa will pay GBP11.3 million upfront, with a further GBP4 million to be paid based on the company's performance in 2016, 2017 and 2018. The entire consideration will be paid in cash.
First Water is based in Ramsbury and designs and manufactures advanced wound dressings and skin adhesives, Scapa said.
"The acquisition of First Water further enhances our strategy in healthcare to provide turn-key solutions as a strategic outsourcing partner to our global customers," said Scapa Chief Executive Heejae Chae.
Elsewhere, Scapa said it has seen good growth in the year to March 31, despite currency headwinds, and said it anticipates trading profit for the year to be ahead of market expectations.
Scapa shares were up 7.9% to 153.00 pence on Monday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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