16th Apr 2007 09:00
Bespak PLC16 April 2007 Bespak Expands Airway Management Portfolio with Emergent Acquisition Bespak PLC ("Bespak") (LSE: BPK), a leader in devices for inhaled drug deliveryand anaesthesia, today announces a two-step acquisition of Emergent RespiratoryProducts Inc. ("Emergent") of Irvine, California for a maximum totalconsideration of $38m. Emergent develops, manufactures and sells specialitybreathing equipment and related single-use circuits and masks to emergencyservices and hospital emergency departments as an early treatment for patientsexperiencing breathing difficulty. Bespak will initially invest $3m for a 51% equity stake in Emergent. Thisinitial investment will be used to enlarge Emergent's pre-hospital salesorganisation and leverage the opportunities from Bespak's range of proprietaryairway management products. The remaining 49% will be acquired from the currentshareholders between 2009 and 2011 at a pre-determined multiple of profits, withan estimated cost ranging from $15m to $18m but in any event subject to amaximum deferred consideration of $35m. Emergent's patented Continuous Positive Airway Pressure (CPAP) products offer arange of benefits over competing products. CPAP is non-invasive and supplies air"on demand" to conscious, spontaneously breathing patients. The acquisition ofEmergent is highly complementary to King Systems ("King"), Bespak's existingUS-based anaesthesia and airway management business acquired in 2005. Theeventual combination of Emergent's sales organisation with that of King willexpand Bespak's access to the growing pre-hospital emergency medicine marketsegment where Bespak's existing airway management products have considerablepotential. Meanwhile, Emergent and King will explore mutual exploitation oftechnology across the two companies' product lines. The current chief executiveof Emergent will remain with the business. Emergent's sales grew by 88% to $1.5m in calendar year 2006, but because it isin the early stages of sales growth, the company recorded a pre-tax loss of$2.0m. The gross assets of Emergent at 31 December 2006 were $1.2m. CPAP, which is indicated for patients with congestive heart failure, pulmonaryoedema, and asthma attacks, is an alternative to intubating patients while theyare transported to hospital, thus reducing the length and cost of hospitalstays, reducing the risk of infection, and improving patient outcomes. The CPAPmarket is small but growing rapidly in the US and Europe. The $6m US market isnow growing at approximately 40%. Mark Throdahl, Bespak's Chief Executive, commented: "We are delighted toannounce the acquisition of Emergent, continuing our strategy of building Bespakaround high-growth markets and technologies that help people to breathe.Emergent brings another growth platform to Bespak's portfolio of growingbusinesses. It also expands our market reach from anaesthesiology to emergencymedicine not only for CPAP, but also for Bespak's existing airway managementproducts." For further information, please contact: Bespak plc Tel: +44 (0) 1908 552600Mark Throdahl, Chief ExecutiveJonathan Glenn, Group Finance Director Maitland Tel: +44 (0) 20 7379 5151Liz Morley or Brian Hudspith Bespak plc is a leader in medical devices for inhaled drug delivery andanaesthesia. The Group develops drug delivery systems for the pharmaceuticalindustry and disposable airway management products for critical care settings inhospitals. Bespak develops and manufactures metered dose inhaler valves, actuators,compliance aids, dry powder devices, disposables facemasks, breathing circuits,and laryngeal tubes. The Group holds the 2005 Frost & Sullivan Award forTechnology Innovation and has facilities in King's Lynn and Milton Keynes in theUK, Indianapolis, Indiana, and Kent, Ohio in the US, and Mumbai, India. Bespakis a public company quoted on the full list of the London Stock Exchange (LSE:BPK). This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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