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Synergy Health

August 2012

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • SYR
  • Price:
  • 916p
Synergy has completed the acquisition of SRI/Surgical Express, a Nasdaq-listed group that rents out surgical instruments and hospital gowns, for £24.9m. It is paying £16.2m in cash for SRI and taking on £8.7m in debt.SRI is the market leader in outsourced hospital sterilisation services (HSS) with seven such contracts. Synergy's plan is to merge SRI's network of ten service centres with its other recent acquisition, MSI Surgical, to reduce costs through synergies, while creating an entity generating hospital sterilisation revenues of US$42m (£27.2m), making it the largest supplier of HSS in the US.Separately Synergy has announced that Q1trading has been in-line with board expectations, with revenues up to low single dig ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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