Synergy Health plc (SYR.L) disclosed the acquisition of Sinagama II Technologies Sdn Bhd (Sterilgamma).
Sterilgamma operates a gamma sterilisation facility in Rawang, near Kuala Lumpur and an ethlyene oxide facility in Kulim, near Penang.
Sterilgamma also has a joint venture relationship with a second ethylene oxide facility in Port Klang. The business has been in receivership and has been purchased as part of a sale process conducted by an appointed receiver at a value equivalent to 6.2x EBITDA.
Moreover, the business will cement Synergy's presence in the Malaysian market alongside existing gamma and ethylene oxide facilities in Kuala Ketil. The capacity expansion will help to maintain the Company's ability to offer a full sterilisation service to its customers. The business will require an element of restructuring prior to delivering financial returns that are in line with the rest of Synergy's sterilisation business.
Richard Steeves, Chief Executive of Synergy Health, said,
"This acquisition further strengthens our position in Malaysia and the wider Asian region whilst supporting our strategy to expand our international medical device sterilisation network. The acquisition will also allow us to explore opportunities to deliver further hospital sterilisation services in Malaysia."
Sterilgamma also has a joint venture with a private hospital group providing outsourced hospital sterilisation services to the Malaysian market.
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