Synergy Health bets on the US with $25m SRI Surgical takeover

City A.M. Reporter
SYNERGY Health said yesterday it would buy US based SRI Surgical Express to increase its presence in the world’s largest healthcare market and expand its reach out of the struggling UK and European economies.

Synergy, a healthcare services provider, said it would pay $3.70 per SRI share, a two per cent discount to SRI’s closing price on Wednesday, valuing the company at $25.1m (£16.1m).

“We were looking to enter the US hospital sterilisation market in 2014, but we decided to bring that forward,” chief executive Richard Steeves said.

SRI Surgical is a supplier of sterile surgical gowns and surgical instruments to hospitals and surgery centres in the US.

He added that the company was under-invested in the US, which is at the helm of the healthcare market.

Synergy reported a 13 per cent rise in full-year adjusted profit on the back of a strong performance in emerging markets.

It expects the bulk of its future growth to come from Asia, particularly China, and from the US, with both markets continuing to grow at 25 per cent to 30 per cent. For the year ended 1 April, Synergy’s adjusted pre-tax profit rose to £43.4m from £38.3m last year.

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