A Staffordshire manufacturer has been acquired in a £22m deal by an AIM-listed surgical and advanced woundcare specialist.
Raleigh Adhesive Coatings, a woundcare and bio-diagnostics coatings business, has been snapped up by Advanced Medical Solutions Group (AMS), which is headquartered in Cheshire.
Raleigh employs 31 full-time staff in its recently upgraded manufacturing facilities in Eccleshall, and is a subsidiary of Tamworth-based Apollo Chemicals Group.
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."
Chris Meredith, chief executive of AMS, added: "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 LiquiBand XL 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."
The shareholders of Raleigh were advised by Bracebridge Corporate Finance, led by managing director Andy Moore.
Legal advice to the shareholders of Raleigh was provided by Mills & Reeve in Birmingham, led by Peter McLintock.
Moore said: "We are delighted to have advised on this transaction, adding to our extensive track record in the healthcare sector.
"It represents an exciting strategic acquisition for AMS and at the same time an excellent result for the shareholders of Raleigh."