Scapa expands medical division with $30m acquisition

Bonding materials firm Scapa has bought Tennessee-based WEBTEC Converting for $30m in cash.

WEBTEC is a contract manufacturer and converter, printer and packager of adhesive-backed medical devices and provides companies in the woundcare, diagnostics and electronics markets.

"Scapa is seeking to build a group that is comprised of three divisions, equal in scale: Medical, Electronics and Industrial. The Acquisition supports this growth and is an important step in enhancing Scapa's technology and service offer to medical customers," Scapa said.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

A maximum additional payment of $15m could be paid depending on results in 2012 and 2013.

WEBTEC generated unaudited revenues and operating profits of $27m and and $3.6m in 2010.

Scapa's Chief Executive Heejae Chae said: "[WEBTEC's] blue chip customer base and strong management team are an excellent fit with our Group and will enable us to offer turn-key solutions in advanced wound care and consumer medical segments."