Advanced Medical Solutions Group plc has been given the green light for the potential £121 million acquisition of Peters Surgical.

The specialist in tissue-healing technologies, headquartered in Winsford, Cheshire, said the deal is expected to complete by 1st July after it received regulatory approval following the French Foreign Direct Investment screening process. 

Peters Surgical is a leading European provider of speciality surgical products and generated revenues of €84m in the 12 months to 31st December 2023.

“With the addition of Peters Surgical and Syntacoll, AMS’s consolidated surgical revenue for FY23 would have been almost double and the business unit would have represented nearly 80% of AMS Group revenues,” stated AMS. 

“AMS will provide more detail on potential synergies in September, once the transaction and the integration project plan are complete.”

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The deal includes an initial cash payment of £113.2m, with an earnout of up to £7.6m payable in FY2025 on delivery of US suture 510(k) approvals, achievement of FY24 revenue and gross margin targets.

Chris Meredith, CEO of AMS, said: “We are delighted to have secured regulatory approval for this transformational acquisition. 

“In anticipation of completion, we have been working closely with Peters Surgical to begin an extensive integration project, with a dedicated team now in place to manage the process which has confirmed our view of the quality of the Peters Surgical business, its complementarity with AMS’s existing offering, as well as the enthusiasm and commitment of its staff. 

“This transaction is a substantial step forward for AMS as we establish an enhanced portfolio of own-branded products, strengthen our direct sales capabilities and look to secure greater global traction in key markets.”

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