Valleys medical firm gains foothold in Europe
AN EXPANDING medical devices business based in the Valleys has made its biggest acquisition yet in a deal expected to increase its sales by a third to £60m.
Mountain Ash-based Flexicare, which makes a wide range of medical devices from respiratory products to continence care products, has confirmed its first mainland European acquisition in medical devices firm Medisize BV, which operates out of offices in the Netherlands and has subsidiaries in Germany and Italy.
Flexicare currently employs 120 staff worldwide, with 65 at its head office in Mountain Ash, where it was established in 1989.
The acquisition of Medisize, its third in the past 13 months, sees Flexicare adding a further 45 staff.
The acquired business manufactures a range of respiratory and anesthesia products for critical care, neonatology, emergency, homecare and radiology.
The value of the deal has not been disclosed. While revenue figures for Medisize BV are not publicly available, some analysts suggest it could add a further £20m of turnover to Flexicare.
For the year to the end of November, 2016, Flexicare generated global sales of £28.5m.
For the current financial year it is expected to grow sales by a further 40% to £40m. And with the new sales contribution of Medisize, it is expected to become a £60m revenue business.
Medisize has been acquired from an affiliate of PhillipsMedisize.
Flexicare managing director Hash Poormand said: “This transaction underscores our commitment across Europe to be a leader in airway management and anaesthesia, with the ability to deliver and service the market at scale.
“The rapid organic growth that we have enjoyed, as a result of our innovative product portfolio and recent acquisitions, will give us further reach and the combination of the two companies will increase the value Flexicare and Medisize BV deliver to its customers and end-users.
“The acquisition is expected to immediately accelerate revenue growth and drive overall earnings growth potential for Flexicare’s wider range of anaesthesia and airway management products – truly exciting times ahead.”