04.03.17
SCA’s acquisition of BSN medical, a leading medical solutions company, has been closed. The company develops, manufactures, markets and sells products within wound care, compression therapy and orthopedics. The purchase price for the shares amounts to €1.4 billion and takeover of net debt to approximately €1.34 billion. SCA consolidates BSN medical as of April 3, 2017.
BSN medical’s sales for 2016 amounted to €850m and adjusted EBITDA for 2016 was €210 million. Organic sales, which excludes exchange rate effects, acquisitions and divestments, increased by 5.3%. BSN medical will be included in SCA’s Personal Care business area. Together with SCA’s business unit Incontinence Care, BSN medical will form the new business unit Health and Medical Solutions. This business unit will be led by Margareta Lehmann, currently president of SCA Incontinence Care.
“The BSN medical acquisition is an excellent strategic fit for SCA, supporting our vision to improve well-being through leading hygiene and health solutions, two closely interlinked areas. Our incontinence business, with the global leading TENA brand, shares similar positive market characteristics, customer and sales channels with BSN medical, which provide opportunities for accelerated growth through cross-selling,” says Magnus Groth, president and CEO, SCA.
“BSN medical, with well-known brands such as Leukoplast, Cutimed, JOBST, Delta Cast, Delta Lite and Actimove, has leading market positions in several attractive medical product categories and provides a new growth platform with future industry consolidation opportunities,” Groth continues.
The acquisition is expected to realize annual synergies of at least €30 million with full effect three years after closing. Restructuring costs are expected to amount to a total of approximately €10 million to be incurred in the first three years following completion.
The BSN medical acquisition is expected to be accretive to SCA’s earnings per share from the first year. The company has high cash conversion and an asset-light business model.
The acquisition is fully debt-funded. SCA remains fully committed to retaining a solid investment grade rating.
BSN medical’s sales for 2016 amounted to €850m and adjusted EBITDA for 2016 was €210 million. Organic sales, which excludes exchange rate effects, acquisitions and divestments, increased by 5.3%. BSN medical will be included in SCA’s Personal Care business area. Together with SCA’s business unit Incontinence Care, BSN medical will form the new business unit Health and Medical Solutions. This business unit will be led by Margareta Lehmann, currently president of SCA Incontinence Care.
“The BSN medical acquisition is an excellent strategic fit for SCA, supporting our vision to improve well-being through leading hygiene and health solutions, two closely interlinked areas. Our incontinence business, with the global leading TENA brand, shares similar positive market characteristics, customer and sales channels with BSN medical, which provide opportunities for accelerated growth through cross-selling,” says Magnus Groth, president and CEO, SCA.
“BSN medical, with well-known brands such as Leukoplast, Cutimed, JOBST, Delta Cast, Delta Lite and Actimove, has leading market positions in several attractive medical product categories and provides a new growth platform with future industry consolidation opportunities,” Groth continues.
The acquisition is expected to realize annual synergies of at least €30 million with full effect three years after closing. Restructuring costs are expected to amount to a total of approximately €10 million to be incurred in the first three years following completion.
The BSN medical acquisition is expected to be accretive to SCA’s earnings per share from the first year. The company has high cash conversion and an asset-light business model.
The acquisition is fully debt-funded. SCA remains fully committed to retaining a solid investment grade rating.
