Bolton’s Vernacare has ‘huge potential’ for overseas growth with latest acquisition

North West medical products manufacturer Vernacare has acquired Lancashire-based Synergy Health Healthcare Consumable Solutions (HCS).

The Bolton-headquartered firm snapped up HCS from medical giant STERIS plc for an undisclosed sum.

Vernacare, a provider of single-use infection prevention systems for the healthcare sector, employs 180 people in the UK and overseas. Its products are used by more than 94% of NHS Trusts and sold to over 50 countries.

HCS manufactures products for wound care and surgery, employing around 100 across its HQ and production facility in Chorley and a warehouse in Preston.

In October 2015, Vernacare was backed by investment firm Palatine Private Equity as it embarked on a mission to grow its global footprint.

Matt Miller, chief exec of Vernacare, said: “This acquisition will significantly increase the size of our business, and demonstrates the commitment of our investors, Palatine Private Equity, to the continued growth of Vernacare.

“In particular, there is huge potential for further overseas growth, where we can expand Vernacare’s strong market presence by introducing new products. It will also give us the opportunity to work more closely and broadly within the NHS and UK independent healthcare markets, enhancing our market position.”

He added: “Operations and activities continue as normal across the existing Bolton, Chorley and Walton Summit facilities. We look forward to working together productively and collaboratively during this exciting period of opportunity and growth.”

HCS will move forward under the Vernacare brand.

A spokesperson for STERIS plc said of the deal: “Both STERIS and Vernacare believe that Vernacare can better grow HCS product sales through its broad distribution network and complementary product offering.”

Andy Lees, a partner at Palatine Private Equity, which has offices in Manchester, London and Birmingham, commented: “This acquisition is a strategic move for Vernacare and provides the business with a number of expansion opportunities.

“The addition of HCS allows Vernacare to broaden its product range and branch out into new areas of the healthcare industry to support further growth. The company already has a large presence in the global market, and this new offering will only boost its exporting opportunities.”

Financial due diligence on HCS and the enlarged group was provided by a Deloitte team, headed up by Jodi Birkett and Paul Maddison. The firm’s Sean Beech and Avril Edney provided tax structuring advice. Nigel Birkett and Dave Grassby provided debt advisory services.

Vernacare received legal advice from law firm DLA Piper’s Yunus Maka and Lee Brierley.

The deal was also supported with 2nd lien debt facilities provided by Manchester-based investment firm Tosca Debt Capital (TDC).

Richard Williams, partner at TDC, commented: “We are delighted to have been able to support a strong regional business in executing its growth and acquisition strategy.”

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