AIM-listed Scapa has acquired US-based medical devices business WEBTEC Converting on the back of securing a £20 million funding package.

AIM-listed Scapa has acquired US-based medical devices business WEBTEC Converting on the back of securing a £20 million funding package.

Lloyds Bank Corporate Markets and Yorkshire Bank Corporate & Structured Finance both contributed towards the loan package obtained by the Manchester-headquartered chemicals business.

Manufacturer WEBTEC provides adhesive-backed medical devices and specialist tapes. The business is to be acquired for an initial $30 million (£19 million), with additional payments of $10 million and $5 million payable based on future operating profit targets.

Heejae Chae, chief executive officer at Scapa, comments: ‘Our growth strategy has been to seek acquisition opportunities which strengthen our capability and enhance our global business.

‘Its blue chip customer base and strong management team are an excellent fit with out Group and will enable us to offer turn-key solutions in advanced would care and consumer medical segments. I am confident that this acquisition will allow us to continue the strong progress we have made in the last 18 months.’

According to a statement the deal will broaden Scapa’s medical technology portfolio and give access to a broader client base with ‘significant’ cross-selling opportunities.

Paul Stanley, relationship director for Lloyds Bank Corporate Markets, adds: ‘Scapa is one of the few players in its market with a genuine global capability and it needs a team that can provide global trading expertise with on-the-ground, local support.’