Wound care specialist Advanced Medical Solutions (AMS) is proposing to acquire RESORBA, a wound care business, for €63.8m (£55m).
To fund the acquisition the firm is placing over 42m shares in AMS at a price of 73p per share to raise £34m.
The acquisition is expected to be earnings per share enhancing in the twelve months ending 31 December 2012.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Chris Meredith, chief executive officer of AMS said: "Part of our core growth strategy has been to examine potential acquisition opportunities that strengthen our business with complementary technologies and greater market access, specifically in relation to the operating room segment of our global business."
The share price rose 13.1% to 82p by 15:25.
NR
