Listed medical solutions firm acquires coating business in £22 million deal

A Staffordshire contract coating business is under new ownership after being acquired in a multi-million pound deal.

Raleigh Adhesive Coatings, based in Eccleshall, is the only independent company in the UK which specialises in acrylic and silicone gel contract coating for the wound care market.

The company – which employs 31 staff – provides tailor-made solutions for its blue chip customer-base from its recently upgraded facilities at Raleigh Hall Industrial Estate.

Now Raleigh – which was majority-owned by Tamworth-based Apollo Chemicals Group – has been sold to listed surgical and advanced wound care business Advanced Medical Solutions Group plc (AMS) for £22 million.

Jonathan Saunders, chairman of Apollo Chemicals Group Limited 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 wound care 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.”

Bosses at Winsford-based AMS say the acquisition will strengthen its position in the wound care sector by bringing in-house specialist services of acrylic and silicone coating, perforation processing and some bulk materials converting capabilities which are currently outsourced.

It will also allow the company to enter the bio-diagnostic testing sector.

Chris Meredith, CEO of AMS, said: “We are delighted to add Raleigh to the group. We have been looking for synergistic technologies that add value to our wound care 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. We look forward to welcoming the Raleigh team to the group to build on their commercial success and leverage their development pipeline.”

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The shareholders of Raleigh were advised by Bracebridge Corporate Finance on the transaction.

Managing director Andy 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.”

Business Live – West Midlands