Perth-based Eastland Medical Systems Ltd has, through its subsidiary Eastland Medical (WA) Pty Ltd, entered into a conditional contract to acquire 100 per cent of Westcoast Surgical & Medical Supplies.
Perth-based developer and manufacturer of injection, infusion and blood-drawing devices, Eastland Medical Systems Ltd has, through its subsidiary Eastland Medical (WA) Pty Ltd, entered into a conditional contract to acquire 100 per cent of Westcoast Surgical & Medical Supplies.
The purchase price includes a payment of $850,000 in cash together with the issue of 5.67 million of fully paid ordinary shares in Eastland at 15 cents per share. There is a deferred payment of $504,000, based upon performance of the business that will be paid in 3 annual amounts of $168,000 by the issue of Eastland shares.
The conditions to the offer are that within 60 days from signing, auditors, acting for Eastland, be satisfied with their review of the audited financial statements for the period ended 31 March 2006 and that EMWA arranges funding on acceptable terms within 60 days of signing.
Westcoast is a medical products distributor to the WA medical marketplace. Operating from its purpose built facility the company is set to continue its rate of year on year growth at 20 per cent on current turnover of approximately $4.5 million.
Recently, EMWA announced the signing of a conditional agreement to acquire South African distribution group, Professional Medical Supplies (Pty) Ltd by its South Africa subsidiary, Eastland Medical Systems South Africa.
At 1050 WST, shares in the company were up .5 cents to 14 cents.
Below is the full announcement:
Eastland Medical Systems Ltd (Eastland) has, through its 100% subsidiary Eastland Medical
(WA) Pty Ltd (EMWA), entered into a conditional contract to acquire 100% of West Australian
Medical products Distributor, Westcoast Surgical & Medical Supplies (Westcoast).
Over the last 11 years Westcoast has grown steadily to become a highly regarded and leading
supplier to the WA medical marketplace. Operating from its purpose built facility the company is set to continue its rate of year on year growth at 20% on current turnover of approximately $4.5million.
Further strengthening the Eastland® management team, Mr. Craig Inglis, Managing Director of Westcoast will remain with the company in his present position. Craig brings to Eastland extensive industry knowledge and 30 years experience in the medical marketplace. Eastland will purchase all the Assets and assume the Liabilities of the Business for $400,000 as per attached balance sheet, to be adjusted at Settlement up or down as determined by audited accounts at the date of settlement together with the Goodwill of the Business for $2,204, 000. The purchase price will be paid through the payment of $850,000 in cash together with the issue of 5,670,000 of fully paid ordinary shares in Eastland® with a price of $0.15 cents per share. There is a deferred payment of $504,000, based upon performance of the business that will be paid in 3 annual amounts of $168,000 by the issue of Eastland® shares. The conditions to the offer are that within 60 days from signing, Auditors, acting for Eastland, be satisfied with their review of the audited financial statements for the period ended 31 March 2006 and that EMWA arranges funding on acceptable terms within 60 days of signing.
Eastland's CEO, Mr Don O'Sullivan says "The addition of Westcoast compliments and builds upon Eastland's existing direct sales and distribution channel in Australia. This acquisition not only provides top and bottom line growth but will create organisational synergies and deliver operational cost savings. We also see this acquisition supporting the effective forthcoming national launch of Eastland®'s range of safer injectable devices to the Australian market".
The contract to acquire West Coast comes close behind the recent announcements by Eastland®s' South African Subsidiary Eastland Medical Systems South Africa (Pty) Ltd (EMSSA) which recently contracted to purchase 75% of South African distributor Prof Medical. In combination with Health in Form this creates a strong sales and distribution organisation in sub Saharan Africa and creates the platform for listing EMSSA on the Johannesburg Stock Exchange. Eastland® continues with its Global expansion strategy and to aggressively develop a path to market for its range of "Safe injectable devices" to world markets. With the recent commencement of production of Clip-On, Retralok and Vetlok, Eastland is now moving to clinical evaluations and to progress regulatory approvals to enable the release of these products to Eastland's Global network of Distributors.
