BPK Bespak

RNS Number:8927U
Bespak PLC
16 April 2007


      Bespak Expands Airway Management Portfolio with Emergent Acquisition      


Bespak PLC ("Bespak") (LSE: BPK), a leader in devices for inhaled drug delivery
and anaesthesia, today announces a two-step acquisition of Emergent Respiratory
Products Inc. ("Emergent") of Irvine, California for a maximum total
consideration of $38m. Emergent develops, manufactures and sells speciality
breathing equipment and related single-use circuits and masks to emergency
services and hospital emergency departments as an early treatment for patients
experiencing breathing difficulty.

Bespak will initially invest $3m for a 51% equity stake in Emergent. This
initial investment will be used to enlarge Emergent's pre-hospital sales
organisation and leverage the opportunities from Bespak's range of proprietary
airway management products. The remaining 49% will be acquired from the current
shareholders between 2009 and 2011 at a pre-determined multiple of profits, with
an estimated cost ranging from $15m to $18m but in any event subject to a
maximum deferred consideration of $35m.

Emergent's patented Continuous Positive Airway Pressure (CPAP) products offer a
range of benefits over competing products. CPAP is non-invasive and supplies air
"on demand" to conscious, spontaneously breathing patients. The acquisition of
Emergent is highly complementary to King Systems ("King"), Bespak's existing
US-based anaesthesia and airway management business acquired in 2005. The
eventual combination of Emergent's sales organisation with that of King will
expand Bespak's access to the growing pre-hospital emergency medicine market
segment where Bespak's existing airway management products have considerable
potential. Meanwhile, Emergent and King will explore mutual exploitation of
technology across the two companies' product lines. The current chief executive
of Emergent will remain with the business.

Emergent's sales grew by 88% to $1.5m in calendar year 2006, but because it is
in the early stages of sales growth, the company recorded a pre-tax loss of
$2.0m. The gross assets of Emergent at 31 December 2006 were $1.2m.

CPAP, which is indicated for patients with congestive heart failure, pulmonary
oedema, and asthma attacks, is an alternative to intubating patients while they
are transported to hospital, thus reducing the length and cost of hospital
stays, reducing the risk of infection, and improving patient outcomes. The CPAP
market is small but growing rapidly in the US and Europe. The $6m US market is
now growing at approximately 40%.

Mark Throdahl, Bespak's Chief Executive, commented: "We are delighted to
announce the acquisition of Emergent, continuing our strategy of building Bespak
around high-growth markets and technologies that help people to breathe.
Emergent brings another growth platform to Bespak's portfolio of growing
businesses. It also expands our market reach from anaesthesiology to emergency
medicine not only for CPAP, but also for Bespak's existing airway management
products."


For further information, please contact:

Bespak plc                                 Tel: +44 (0) 1908 552600
Mark Throdahl, Chief Executive
Jonathan Glenn, Group Finance Director

Maitland                                   Tel: +44 (0) 20 7379 5151
Liz Morley or Brian Hudspith


Bespak plc is a leader in medical devices for inhaled drug delivery and
anaesthesia. The Group develops drug delivery systems for the pharmaceutical
industry and disposable airway management products for critical care settings in
hospitals.

Bespak develops and manufactures metered dose inhaler valves, actuators,
compliance aids, dry powder devices, disposables facemasks, breathing circuits,
and laryngeal tubes. The Group holds the 2005 Frost & Sullivan Award for
Technology Innovation and has facilities in King's Lynn and Milton Keynes in the
UK, Indianapolis, Indiana, and Kent, Ohio in the US, and Mumbai, India. Bespak
is a public company quoted on the full list of the London Stock Exchange (LSE:
BPK).

 

                      This information is provided by RNS
            The company news service from the London Stock Exchange

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