The purchase consideration for the acquisition is expected to be a maximum amount of up to 130 million rand as well as a maximum amount of up to 18 million rand relating to profit target payments.
(READ MORE: Ascendis Health acquires Surgical Innovations)
“Ascendis intends scaling its medical devices platform, which currently consists of Surgical Innovations operating within the Pharma-Med division, to become a leading provider of medical devices throughout South Africa,” the health and care brands company said.
“RCA has been identified as a complementary distributor of medical devices which will enhance Ascendis’ ability to service hospitals, clinics and government tenders on a turnkey basis within a growing market. Ascendis has thus pursued this acquisition with the intention of integrating RCA into its Pharma-Med division.”
(READ MORE: Ascendis Health reports healthy interim results)
The acquisition should take effect from 1 May 2014 and will be concluded upon the fulfilment of several conditions.
These conditions include [DATA ASC:Ascendis Health] obtaining the audited financial statements of RCA for the year ended 30 April 2014 by no later than 26 June 2014 and Ascendis and the sellers of RCA obtaining regulatory approvals necessary to enable them to implement the acquisition.
RCA is a medical device business, which distributes and services a range of capital equipment and related surgical consumables, specialising specifically in critical care.