maa- medec jumps on athlegen

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    Medec jumps on Athlegen
    11/12/03 By: Sarah Richards

    Medec Limited (MAA) today announced it will acquire Athlegen Pty Limited, a manufacturer of products for the health care and life style industry for $1.2 million. The company said it expects the merged business to boost its target revenue to $13 million in 2004 and $24 million in the 2005 financial year.

    Medec advised that the purchase would be funded primarily from re-allocating the proceeds of the IPO and from its cash flow.

    “$400,000 is payable in cash at settlement and $800,000 payable over 12 months in 2004 by instalments,” said the company.

    This is Medec’s third acquisition in the two months since listing on the ASX.

    “This is a high synergy acquisition that will boost our growth in Australia and Europe,” commented executive chairman Mr Josef Plattner.

    Athlegen is based in Ballarat Victoria and has net tangible assets of $900,000 including retained earnings of $900,000.

    “Athlegen’s sales have grown constantly over the last 10 years and are expected to reach more than $6 million in the 2004 financial year,” highlighted Medec.

    Settlement is scheduled for January 2 and is subject to the completion of due diligence.
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