"The acquisition of Surgical Innovations is the latest in our targeted growth strategy and brings our total investment in the last 2 years to over R 1.6 billion,” group CEO Karsten Wellner said in a statement.
“[This delivers] on our deliberate strategy of combining mature, well managed, resilient and health brands with exciting growth potential in South Africa, as well as globally.”
[DATA ASC:Ascendis] is a health and care brands company operating in plant and animal and human health.
Ascendis’s shares debuted on the JSE at 11 rand, closing up at 11.10 rand on a day that saw the JSE All Share down by 0.7 per cent.
Surgical Innovations Limited (SI) specialises in the designing and manufacturing of creative solutions for use in minimally invasive surgery. SI also a pioneering firm in the laparoscopic surgery field.
Wellner explained that SI employs more than 130 staff and has achieved compound annual growth in revenue of around 20 per cent over the last three years.
“Surgical Innovations is a fast growing medical device distributor, specialising in the state of the art high-tech surgical device needs of South African surgeons. The purchase consideration includes three earn out payments with certain growth targets over the next three years,” he added.
Ascendis plans to catapult Surgical Innovations in becoming a leading provider of medical devices throughout South Africa to private and government hospitals.
This will be by strengthening its current position, increased market penetration in current speciality areas, additional product lines and further carefully considered strategic acquisitions.
Ascendis consists of three core divisions that cater for preventive and interventionist healthcare requirements. These include Consumer Brands (over-the-counter medicines, vitamins, sports nutrition and specialist skin care products), Pharma-Med (prescription drugs and medical devices) and Phyto-Vet (plant and animal health and care).
“We are excited about the addition of Surgical Innovations to our group as it reflects the kind of well-known brands that we are currently evaluating via a strong deal pipeline,”
“[This] is allowing us to develop our market position and become a leading player in the local and international health and care sector.”