Sexual Health Group plc (SHG), a Berkshire-based supplier of sexual health, patient hygiene and diagnostic products to customers including the NHS, is to acquire Pasante Healthcare to create a leading provider of products and services in the UK’s sexual health market.
Sexual Health Group plc (SHG), a Berkshire-based supplier of sexual health, patient hygiene and diagnostic products to customers including the NHS, is to acquire Pasante Healthcare to create a leading provider of products and services in the UK’s sexual health market.
The £2.4 million cash consideration, payable on completion, is to be funded by a proposed placing of 175 million shares at 5p. The directors of SHG intend to subscribe for new shares in the company to the value of £15,000. Working capital and part of the costs of the transaction are proposed to be financed from bank facilities.
Pasante Healthcare is a privately-owned business that operates out of Sussex, supplying sexual health products to the UK market.
Following the acquisition, the enlarged group will grow its retail presence in key national pharmacy and supermarket groups, as well as in the NHS condom market, where it is set to achieve an estimated combined 45 per cent market share. Benefits include the acquisition of two complementary products in the pregnancy diagnostic market and point-of-care Insti™ HIV Test, sold to the NHS.
Commenting on the proposed acquisition, SHG chairman John French says: “The acquisition of Pasante will place SHG in a stronger position, enabling the directors of SHG to achieve further economies of scale and additional cost savings to strengthen the enlarged company and fund complementary acquisitions in selected niche areas.”
Pasante generated adjusted net profit before tax of £226,000 from a £2.1 million turnover in the eight months ended January 2008, and recorded net assets of £409,393 at the end of March 2008. The Pasante brand of condoms accounted for sales of 24.5 million condoms to the NHS in the year ended May 2007, representing over 40 per cent of the NHS market.
