Scapa buys Acelity's advanced wound dressings facility

AIM-listed Scapa has announced the acquisition of Acelity's advanced wound dressings manufacturing facility in Gargrave for £31m in cash.

The healthcare company has also entered into an exclusive five-year manufacturing supply agreement with Acelity for Systagenix advanced wound care products, expanding its existing partnership with the group.

Scapa said the aaddition of the well invested 335,000-square-foot Gargrave site will it as one of the leading global B2B manufacturers of advanced wound care products.

It said the acquisition "significantly" enhances its capabilities, services and footprint and adds gamma sterilisation to its capability, providing a unique value proposition and additional flexibility. In addition, it further deepens Scapa's strategic relationship with Acelity and brings to the group 22 research and developments scientists with 196 years of combined experience.

The deal will help maximise operational efficiencies for the healthcare business, Scapa said, adding that the acquired operations have existing third party contract manufacturing operations and a sterilisation business operated out of Gargrave.

Group chief executive Heejae Chae said: "The transaction marks a milestone in our healthcare journey from a material supplier to a global healthcare company. It bridges the final gaps in our value proposition in capabilities, services and footprint. The Gargrave facility will serve as our European centre of excellence with its state of the art manufacturing facility and significant innovation and development capability.

"Additionally, the transaction will further strengthen our strategic relationship with Acelity by supporting its strategy for continued growth as the leading wound care company in the world."

At 1600 BST, the shares were up 5.8% to 433.60p.