Acquisition

Monday 11th July 2011 

Synergy Health plc

("Synergy" or "the Company")

Acquisition of Malaysian Sterilisation Company

- Increases medical device sterilisation capacity in Malaysia

- Develops Asian and global sterilisation network

- Creates a hospital sterilisation reference site

Synergy Health (LSE: SYR), a leading global provider of outsourced sterilisation services to the medical device market and healthcare sector, announces the acquisition of Sinagama II Technologies Sdn Bhd (Sterilgamma).

Sterilgamma operates a gamma sterilisation facility in Rawang, near Kuala Lumpur and an ethlyene oxide facility in Kulim, near Penang. Sterilgamma also has a joint venture relationship with a second ethylene oxide facility in Port Klang. The business has been in receivership and has been purchased as part of a sale process conducted by an appointed receiver at a value equivalent to 6.2x EBITDA. The business had revenues last year of MYR 20 million (£4.1 million) and will cement Synergy's presence in the Malaysian market alongside existing gamma and ethylene oxide facilities in Kuala Ketil. The capacity expansion will help to maintain the Company's ability to offer a full sterilisation service to its customers. The business will require an element of restructuring prior to delivering financial returns that are in line with the rest of Synergy's sterilisation business.

Sterilgamma also has a joint venture with a private hospital group providing outsourced hospital sterilisation services to the Malaysian market. Although still in its embryonic stage it provides an important reference site that could support the development of Synergy's hospital sterilisation network in this region.

Richard Steeves, Chief Executive of Synergy Health, said:

"This acquisition further strengthens our position in Malaysia and the wider Asian region whilst supporting our strategy to expand our international medical device sterilisation network. The acquisition will also allow us to explore opportunities to deliver further hospital sterilisation services in Malaysia."

For Further Information: