Vigilenz is a Malaysian manufacturer and supplier of medical devices and consumables
Bactiguard deepens the partnership that was initiated in 2015 by acquiring Vigilenz Medical Devices and Vigilenz Medical Supplies (together Vigilenz) in Malaysia. The acquisition strengthens Bactiguard’s position in infection control and wound management, as well as innovation and product development capability and capacity.
The consideration consists of a cash payment of USD 4.5 million payable at closing and, subject to approval by the annual general meeting of shareholders (AGM), 241 512 new class B-shares in Bactiguard, equivalent to a value of USD 2 million.
Bactiguard Holding AB (publ) (Bactiguard) has entered an agreement to acquire Vigilenz, a Malaysian manufacturer and supplier of medical devices and consumables, primarily active in wound management and infection control. Bactiguard and Vigilenz have been partners since 2015, when an agreement to develop Bactiguard-coated orthopaedic trauma implants was signed. The implants were CE-marked in late 2018, which paved the way for Bactiguard’s global license agreement with Zimmer Biomet.
Vigilenz has a portfolio of products ranging from surgical sutures, mesh, wound wash and dressings, to orthopaedic trauma implants. One product which Bactiguard considers has significant potential is HYDROCYN aqua®, for advanced wound management of acute and chronic wounds. The product is CE-marked and has been registered by the US FDA. Vigilenz’s research and development activities focus on biomaterials for medical application, urology, cardiovascular and wound management products, with the aim of reducing device related infections. It also has a strong regional distribution network in South East Asia.
“Acquiring Vigilenz makes perfect sense. Together we will have a much stronger offer for infection control and will be able to access the market for advanced wound care, which has a global potential of over USD 5 billion”, says Christian Kinch CEO.
“The transaction will result in substantial synergies both in revenues and cost, by pooling our distribution networks, product development teams, staff functions and production facilities. I am glad that Professor Choudhury has agreed to stay in the business and become a shareholder in Bactiguard, as I see great potential in jointly developing new products and license applications for improved patient outcomes. This is a clear win-win for both companies,” Christian Kinch continues.
In 2019, Vigilenz had a preliminary, consolidated pro forma turnover of approximately MYR 18 million (approx. SEK 42 million), EBITDA of MYR 2.6 million (approx. SEK 6 million) and an EBITDA-margin of 14 percent.
As a result of the acquisition, joint revenues are expected to grow faster than on a stand-alone basis, as the product portfolios are complementary and can be offered throughout both companies’ footprint. In a three to five year perspective, Bactiguard also expects cost synergies of SEK 5-10 million.
The transaction is therefore financially compelling and significantly accretive to revenues, earnings and cash flow.
Source: Company Press Release
Source: Company Press Release