SCA’s acquisition of BSN medical, a leading medical solutions company, has been closed. The company develops, manufactures, markets and sells products within wound care, compression therapy and orthopedics. The purchase price for the shares amounts to EUR 1,400 million and takeover of net debt to approximately EUR 1,340 million.
SCA consolidates BSN medical as of April 3, 2017. BSN medical’s sales for 2016 amounted to EUR 850m (SEK 8,038m) and adjusted EBITDA2) for 2016 was EUR 210m (SEK 1,986m). Organic sales, which excludes exchange rate effects, acquisitions and divestments, increased by 5.3%. BSN medical will be included in SCA’s Personal Carebusiness area. Together with SCA’s business unit Incontinence Care, BSN medical will form the new business unit Health and Medical Solutions. This business unit will be led by Margareta Lehmann, currently President of SCA Incontinence Care.
The acquisition is expected to realize annual synergies of at least EUR 30m with full effect three years after closing. Restructuring costs are expected to amount to a total of approximately EUR 10m to be incurred in the first three years following completion.
The BSN medical acquisition is expected to be accretive to SCA’s earnings per share from the first year. The company has high cash conversion and an asset-light business model.
The acquisition is fully debt-funded. SCA remains fully committed to retaining a solid investment grade rating.
