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Inspiration Healthcare’s acquisition of ventilator maker S.L.E. Limited has transformed the business, says CEO

S.L.E. is primarily focused on designing neonatal ventilators for very small children and premature babies, rather than for adult patients

Inspiration Healthcare - Inspiration Healthcare’s acquisition of ventilator maker S.L.E. Limited has transformed the business, says CEO

Inspiration Healthcare Group PLC’s (LON:IHC) acquisition of ventilator maker S.L.E. Limited has “transformed” the business and almost doubled its size, according to chief executive Neil Campbell.

Speaking to Proactive, Campbell said the £18mln transaction, originally announced last Friday, is “a very big deal” for the group and has shifted the company from “an £18mln turnover business to a £34mln turnover business…almost overnight”.

READ: Inspiration Healthcare to acquire ventilator maker, raises funds

S.L.E. is primarily focused on neonatal ventilators, designed for very small children and premature babies, rather than adult patients, which Campbell said suits the company “down to the ground”.

“Our strategy is to become a world leader in neonatal intensive care and this really helps that fit”, the CEO said, adding that the newly enlarged company will now be exporting around £20mln of goods and derive 60% of its revenues from overseas, helping to fulfil what Campbell said is the desire for Inspiration to become a “global company”.

S.L.E. is also “growing, profitable and cash generative,” he said, adding that the company also has “some great technology [and] a very strong brand in the Middle East and the Far East”.

Inspiration was also supported in the acquisition through a well-received fundraising of £16.5mln, which Campbell said was “substantially more” than they were expecting of between £10-£15mln.

“It is been very pleasing to see the institutional investors see the synergies in the acquisition, putting these two great brands together to create that leading company in neonatology”, he said.

Looking ahead, Campbell said the acquisition is expected to be accretive in the near to medium-term, and that there will be some cost savings as a result of the synergies.

He added that the cash saved from the combination will be used to invest in the company and grow its marketing and product development.

“We see this [acquisition] as a real one plus one equals three, we’ve got complimentary products that we can now sell around the world with a really strong neonatal portfolio”, the CEO said.

Things also seem to be moving in the right direction elsewhere, with Campbell saying demand from the UK’s National Health Service (NHS) for ventilators has seen “no change” despite the coronavirus outbreak showing signs of dying down.

“There is still that need to prepare for if we have a second wave…so that as few lives are lost as possible”, he said.

Shares in Inspiration Healthcare were 0.5% higher at 69.4p in late-afternoon trading on Tuesday.

Quick facts: Inspiration Healthcare

Price: 64.4 GBX

AIM:IHC
Market: AIM
Market Cap: £43.78 m
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