Eastland ups medical ante

Perth-based developer and manufacturer of injection, infusion and blood-drawing devices, Eastland Medical Systems Ltd, is to acquire 100 per cent of Westcoast Surgical & Medical Supplies.

The purchase, through its subsidiary Eastland Medical (WA) Pty Ltd, 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, which will be paid in three annual amounts of $168,000 by the issue of Eastland shares.

Westcoast is a medical products distributor in WA and Eastland expected it to continue its rate of year-on-year growth at 20 per cent on current turnover of approximately $4.5 million, operating from its purpose-built facility in Canning Vale.

Recently, Eastland announced the signing of a conditional agreement to acquire South African distribution group, Professional Medical Supplies (Pty) Ltd, by its South African subsidiary, Eastland Medical Systems South Africa.

Westcoast managing director Craig Inglis, who founded the business in 1995 with partner Mary Inglis, will remain with Westcoast in his position.

According to a statement by Eastland, Mr Inglis has extensive industry knowledge from 30 years’ experience in the medical marketplace.

Eastland will purchase all the assets and assume the liabilities of Westcoast for $400,000, dependent on due diligence, together with the goodwill of $2.2 million. The conditions to the offer are that, within 60 days from signing, auditors acting for Eastland will 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.