Mediwatch, which is headquartered in Rugby and has an operation in West Palm Beach, Florida, is a manufacturer and supplier of high-technology urology and gastro intestinal diagnostic products while Laborie, which is backed by US investment fund Audax Private Equity, is a leading multinational developer, manufacturer and marketer of innovative medical equipment used in the field of urology and women’s health.
Brian Ellacott, CEO of Laborie, commented “We believe that combining Mediwatch’s product portfolio with Laborie’s best in class R&D capabilities and sales network will enable us to better serve physicians and hospitals around the world. We expect to continue to build a suite of leading-edge products organically and through opportunistic acquisitions.”
The offer, which is being made to Mediwatch shareholders by way of a scheme of arrangement, values each Mediwatch share at 6 pence, representing a premium of 118 per cent to the average share price leading up to the announcement that Mediwatch was in talks on 18 October 2013.
Charles Cattaneo, non-executive director at Mediwatch, said; “We are delighted to have found a partner for Mediwatch that can take the business forward to its next stage in its development. The offer price, representing around 28 times the market earnings estimate of £0.3m for the year just ended, reflects the strength of the combined business which will offer a comprehensive diagnostic product portfolio with technical support across the world as well as a platform for accelerated innovation through the combination of two leading research and development teams in their fields.”
WHAT OUR CLIENT SAID:
‘Charles’ corporate finance skills were invaluable to us as a board in guiding us through the sale process under the Takeover Code. Having someone on the board with a detailed knowledge of the business as well as many years of experience in corporate finance transactions and the Takeover Code was hugely helpful in managing the process effectively and delivering this transaction.’
Mark Hughes, Chief Financial Officer at Mediwatch