Synergy Health looks to build US empire

Medical sterilising firm Synergy Health has bought US outfit MSI Surgical Solutions for 6.5m pounds.

The transaction will be funded out of existing debt facilities.

MSI operates a hospital sterilisation facility in New York, and is the second-largest provider of these outsourced services in the US.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues 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

Sign up

The business recorded revenues of $4.0m (approx. £2.5m) in the year ended December 31st 2011, and has been acquired for a cash consideration that equates to 6.5 times earnings before interest, tax depreciation and amortisation.

Synergy says the big idea is to develop a hospital outsourcing service within the United States, following the acquisition of medical device steriliser BeamOne in April.

Synergy's stock is up 1.7% over the last 12 months.

BS