SCA has entered into an agreement to acquire BSN medical from the private equity group EQT.
Article continues below
BSN medical develops, manufactures, markets and sells products within wound care, compression therapy and orthopedics. The purchase price amounts to €2,740m on a debt- and cash-free basis.
The completion of the transaction is subject to customary regulatory approvals. Closing is expected to take place during the second quarter 2017.
BSN medical is an innovative medical solutions company with well-known brands such as Leukoplast, Cutimed, JOBST, Delta Cast, Delta Lite and Actimove which are long established brand leaders in their key markets.
BSN medical has a strong go-to-market and supply chain with sales in more than 140 countries and production in 11 countries. BSN medical has approximately 6,000 employees.
BSN medical reported net sales for year 2015 amounted to €861m (SEK 8,050m) and adjusted EBITDA of €201m (SEK 1,879m), adjusted operating profit of €137m (SEK 1,281m), an adjusted operating margin of 15.9% and adjusted return on capital employed of 7.7%.
The reported net sales for BSN medical for the first nine months of 2016 amounted to €627m (SEK 5,872m), adjusted EBITDA of €151m (SEK 1,414m), adjusted operating profit of €103m (SEK 965m) and an adjusted operating margin of 16.4%.
On a pro forma basis, giving effect to the acquisition, SCA’s net sales for the full year 2015 would have increased from SEK 115.3bn to SEK 123.4bn.
Pro forma adjusted EBITDA for the full year 2015 would have increased from SEK 19.0bn to SEK 20.9bn, adjusted EBITDA margin would have increased from16.5% to 16.9%, pro forma adjusted operating profit for the full year 2015 would have increased from SEK 13.0bn to approximately SEK 14.0bn, adjusted operating margin would have remained at 11.3% and adjusted return on capital employed would have decreased from 12.0% to 10.7%.
The acquisition is expected to be accretive to SCA’s earnings per share from year one. BSN medical has high cash conversion and an asset light business model.
BSN medical’s global addressable market size 2015 is estimated to amount to €11.6bn, with an estimated market growth (CAGR 2015-2020) of approximately 4%, mainly driven by an aging population, increased prevalence of chronic conditions and increased access to health care. ■