Acquisition of WEBTEC Converting Assets
Scapa Group plc ("Scapa"), the global supplier of bonding materials and solutions, is pleased to announce the acquisition of the business, assets and goodwill of WEBTEC Converting LLC ("WEBTEC")
WEBTEC is a leading contract manufacturer and full-service converter, printer and packager of adhesive-backed medical devices that are distributed worldwide. With a state-of-the-art manufacturing facility, WEBTEC manufactures for leading companies in a multitude of arenas.
Background to the Acquisition As part of its growth strategy, Scapa is seeking to build a group that is comprised of three divisions, equal in scale: Healthcare, Electronics and Industrial. The Acquisition supports this growth and is an important step in enhancing Scapa's technology and service offer to medical customers. The addition of WEBTEC's conversion and packaging capability to Scapa's materials expertise and coating technologies adds significant value for customers and brings a major opportunity to build a turn-key full-service offering.
The Acquisition brings a well-invested business which will complement Scapa's existing healthcare operations in California, Connecticut and the UK. WEBTEC's management including Randy Holmes, the CEO and principal shareholder, will remain with the enlarged Group. WEBTEC's highly experienced management team will augment Scapa's management expertise and will facilitate Scapa's growth in this sector.
Benefits of the Acquisition The Directors believe that the Acquisition brings the following advantages to Scapa: - Broadens the Group's medical technology portfolio and service offer; - Brings scale to the Group's healthcare business; - Gives access to a broader client base; - Provides significant cross-selling opportunities and product development potential; - Adds a well invested business with a strong record of high margins and good cash generation; and - Will be earnings enhancing (Note 1). Commenting on the Acquisition, Randy Holmes, Chief Executive of WEBTEC, said: "WEBTEC has invested many years into its core management and production team, developing outstanding converting expertise and packaging capabilities and high quality systems. Integrated with Scapa's materials expertise and coating technologies, these create a market leader in contract manufacturing of adhesive-backed medical devices.
"Commenting on the Acquisition, Heejae Chae, Chief Executive of Scapa Group, said:
"Our growth strategy has been to seek acquisition opportunities which strengthen our capability and enhance our global business. WEBTEC significantly expands and gives critical mass to our healthcare business. Its blue chip customer base and strong management team are an excellent fit with our Group and will enable us to offer turn-key solutions in many healthcare segments. I am confident that this acquisition will allow us to continue the strong progress we have made in the last 18 months."
About Scapa Group plc: Scapa is a worldwide leading manufacturer of bonding products and adhesive components for applications in the healthcare, electronics and industrial markets. Scapa works closely with leading global partners in its target markets, developing specialised adhesive bonding solutions for OEM's, distributors and consumers. For more information, please visit http://www.scapa.com. Note 1: This statement should not be taken to mean that earnings per share in periods following the Acquisition will necessarily be greater than those for the relevant preceding financial period.