Acquisition
September 16 2003 - 3:03AM
UK Regulatory
RNS Number:7972P
Medical Solutions PLC
16 September 2003
16 September 2003
MEDICAL SOLUTIONS ACQUIRES A SECOND LABORATORY FACILITY IN DUBAI
Medical Solutions plc, ("Medical Solutions" or "the Company") the Nottingham
based supplier of services for drug developers and healthcare providers
announces today the acquisition of Histopathology & Specialty Laboratory (HSL)
in Dubai for #275,000 in a part shares part cash transaction.
In June of this year Medical Solutions acquired a private laboratory in Dubai
with annual post tax profits of approximately #1million. This established the
Company as a significant provider of speciality healthcare services in the
region. The acquisition of HSL will provide additional histopathology capacity
complementing Medical Solutions' existing laboratory in Dubai and will provide
additional services for the rapidly expanding private healthcare market in the
region.
Both of these facilities will be transferred to Dubai Healthcare City (DHCC),
the $2 billion green-field development, in July 2004.The aim of the Dubai
Healthcare City initiative is to provide the highest quality healthcare services
through the creation of a world class cluster of healthcare professionals and
service providers. This is intended to satisfy the needs of the expanding
private hospital market in Dubai, the Gulf, and its catchment area of 2 billion
people in the region. Other significant healthcare providers involved in the
DHCC initiative include The Harvard Medical School, The Johns Hopkins Medical
Institute and The Mayo Clinic.
The acquisition was made for #100,000 in cash and the transfer of #175,000 worth
of ordinary shares of 2p each in the Company ("Ordinary Shares") valued at the
mid price at the close of business on 11 September 2003. In addition, a cash
payment of up to #75,000 cash will be payable on the achievement of agreed
financial targets for the first year following the acquisition. The laboratory
already has a profitable business providing services for all the major private
hospitals in Dubai with a turnover of more than AED 1,300,000 (#225,000) and a
profit of AED 300,000 (#52,000). Medical Solutions is acquiring equipment with
HSL with a value of approximately AED 375,000 (#65,000).
Application has today been made to the UK Listing Authority and the London Stock
Exchange for 479,452 Ordinary Shares to be admitted to the Official List and to
trading on the London Stock Exchange's main market. Admission of these Ordinary
Shares is expected to become effective on 19 September 2003.
Charles Green, CEO commented:
"The acquisition of this specialty laboratory was a wonderful opportunity to buy
a cash generative business that will support our strategic intentions to become
the centre of excellence for pathology services in this rapidly growing and
financially important region"
Dr Samar Hourieh, Medical Director, HSL, said:
"Demand in the UAE for high quality medical services is increasing rapidly and
the opportunity to be part of the Medical Solutions Group providing high quality
services from state of the art laboratories was very attractive."
For further information, please contact:
Medical Solutions
Charles Green, Chief Executive Officer
Andy Longstaffe, Finance Director Tel: +44 (0) 115 973 9010
Beattie Financial
Mike Wort / Ann-marie Wilkinson Tel: +44 (0) 20 7398 3300
Notes to Editors
Medical Solutions plc provides world leading services and technology for cancer
diagnosis and pathology, supporting the Healthcare, Pharmaceutical and
Biotechnology sectors.
The group has two major divisions. The Services Division has a range of services
including Specialist Pathology, Biomaterials Resources and Expertise, and 5
Laboratories. These services are provided to the Pharma / Biotech Industry
worldwide and to Healthcare providers, both public and private. The Technology
Divisions' range includes specialist imaging software for telemedicine, image
analysis and quantitation, and the SurePath liquid based cytology (smear test)
system. This division is also key in supporting its' Service divisions offerings
to both the Drug Development market and the Healthcare market.
The combination of world-renowned expertise, state of the art reference
laboratory facilities and innovative imaging technology puts Medical in a unique
position.
This information is provided by RNS
The company news service from the London Stock Exchange
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