mARCH 2012 108 Legal Transactions 

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 www.lawyer-monthly.com DEAL REPORT

SCAPA GROUP HAS ACQUIRED WEBTEC CONVERTING FOR $30M

Scapa Group plc, the global supplier of bonding materials and solutions, has announced the acquisition of the business, assets and goodwill of WEBTEC Converting LLC (WEBTEC) based in knoxville, Tennessee for an initial consideration of US$30 million in cash. Further cash consideration will be payable depending on the results in 2012 and 2013 up to a maximum further payment of US$15 million (see below). As part of its growth strategy, Scapa is seeking to build a group that is comprised

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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. The Acquisition brings a well-invested business which will complement Scapa's ex-

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isting medical operations in California, Connecticut and the Uk. WEBTEC's business has grown substantially as a result of a contract for global supply of a product for an international pharmaceutical company. more recently it has won several new contracts including a contract for the manufacture of a silicone based dressing which will shortly commence and which the management of WEBTEC expects to be substantial. Commenting on the Acquisition, Randy Holmes, Chief Executive of WEBTEC, said: "WEBTEC has invested many years into its core management and production team, developing outstanding converting expertise and packaging capabilities and high quality systems. Integrated with Scapa's materials expertise and coating technologies, these create a market leader in contract manufacturing of adhesive-backed medical devices." LM