AMS acquires Raleigh in US 29m woundcare acquisition
The acquisition aims to strengthen AMS’s position in the woundcare sector by bringing in-house specialist services of acrylic and silicone coating, perforation processing and some bulk materials converting capabilities which are currently outsourced. Silicone coating and perforation capabilities are particularly important to AMS as they are intrinsic to all modern advanced woundcare foam dressings. Raleigh is an existing key supplier, producing the coated adhesive mesh used in the new LiquiBand XL device.
The Acquisition brings synergies with AMS’s finished product offering, with the opportunity to increase the efficiency of the company’s woundcare manufacturing operations and provide entry points into new customers and markets, cross-selling of products and services as well as an R&D pipeline of new projects in the medical space.
Chris Meredith, CEO of AMS, said: “We are delighted to add Raleigh to the Group. We have been looking for synergistic technologies that add value to our woundcare business and this acquisition strengthens our position and product offering in that sector significantly. Having outsourced silicone coating and perforation for some time, we are pleased to bring this capability in-house. Raleigh has also played an important part in improving the design of our LiquiBandXL mesh which we see as an important part of our continued US growth strategy. Raleigh’s expertise in other sectors such as bio-diagnostic strips also opens up further new commercial opportunities for the Group. We look forward to welcoming the Raleigh team to the Group to build on their commercial success and leverage their development pipeline.”
Raleigh offers acrylic and silicone gel contract coating for the woundcare market. It offers a package of services to its customers through its three separate coating lines (one solvent based, one silicone gel based, and one specialist industrial coating line), its pilot facility, two slitting lines, converting lines as well as a stand-alone perforation unit all of which have significant capacity headroom.
Raleigh provides tailor-made solutions for its blue-chip customer base, which includes many of the major woundcare manufacturers and other specialist manufacturers and suppliers in the healthcare sector, and has a strong pipeline of innovative developments.
Jonathan Saunders, chairman of Apollo Chemicals Group and majority shareholder of Raleigh, said: “The synergies between AMS and Raleigh make this a very positive and exciting time for all at Raleigh. We have invested in developing technologies over the last five years for the woundcare and bio-diagnostic markets and have a great team which has worked hard to establish our reputation for excellence, service and quality within these specialist fields. The medical sector does not naturally fit with Apollo Chemicals’ expertise and so I am delighted to say AMS provides an excellent opportunity for both businesses to complement each other, provide enhanced product offerings and accelerate our joint success. We look forward to watching the business go from strength to strength.”