Össur, Reykjavik, Iceland, has acquired Touch Bionics, Livingston, Scotland. The purchase price is £27.5 million (US $39 million) on a debt- and cash-free basis. The acquisition, which does not affect Össur’s share buyback program, was financed through existing loan facilities. With this acquisition, Össur enters into the upper-limb prosthetic market.
Touch Bionics has over 120 employees with operations in Scotland, Germany, and the United States. In 2015, total sales were £15 million (US $21 million) with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of £900,000 (US $1.3 million).
Synergies between the operations of Össur and Touch Bionics are expected to be achieved over the next two to three years, ultimately increasing the EBITDA margin of Touch Bionics to a level similar to Össur’s. The acquisition will not have an impact on the financial guidance provided for the full year.