- Salona Global Medical Device Corporation (SGMD) has signed an agreement to acquire a cash flow positive medical device business for US$6.5 million in cash, shares and deferred payments
- The business is focused on designing, producing and selling specialty plastics in several markets, including the medical device market
- The acquisition target has unaudited annual revenues of approximately S$5M with 40 per cent gross margins
- Salona Global is a US-based, acquisition-focused medical device company
- Salona Global Medical Device Corporation opened trading at $0.79
Salona Global Medical Device Corporation (SGMD) has agreed to acquire a cash flow positive medical device company.
The company is focused on designing, producing and selling specialty plastics in several markets, including the medical device market.
The company has unaudited annual revenues of approximately US$5M with 40 per cent gross margins.
The agreement states that Salona Global would pay US$6,500,000 or just over 1.2 times annual revenues, made up of an initial cash payment of $3,000,000 and the issuance of up to 1,600,000 shares on closing and $2,500,000 in deferred payments upon performance.
This potential acquisition would build upon the strategy to create a fully integrated global medical device company and, if completed, would continue to add cash flow as well as production expertise and capabilities of the company providing the opportunity for further organic growth as Salona Global builds out its medical device product portfolio, either through acquisition or product development.
“With this acquisition, we would add more products and specialty production capacity and revenue and cash flow,” noted Les Cross, Chairman of Salona Global.
“As with our previous acquisitions, this potential deal would add revenue and cash flow, as well as a strong team of professionals with expertise we can expand,” he added.
Salona Global Medical Device Corp is a US-based, acquisition-focused medical device company.
Salona Global Medical Device Corporation opened trading at C$0.79.
