Synergy Healthcare

Synergy Healthcare delivers a range of specialist outsourced services and contract sterilisation services to healthcare providers and other clients concerned with health management. Synergy’s growth and development is a great success story and illustrates what can be achieved when an ambitious and empowered management team is given proper access to growth capital. They have grown into a leading player in the healthcare sterilisation market making regular and significant acquisitions to achieve their objectives.

In 2001 Brewin Dolphin first partnered with Synergy, identifying the company as an exciting proposition in highly niche markets that were seeing rapid expansion through healthcare outsourcing. Brewin Dolphin floated Synergy on AIM in August 2001 raising £8.7m through an institutional placing which valued the whole company at £21m. Over the following six year period Synergy grew to a market capitalisation of over £400m. Throughout this period Brewin Dolphin worked closely with them to identify and target acquisitions for Synergy to facilitate their buy and build strategy.

Synergy made five key acquisitions, returning to the market on three separate occasions with Brewin Dolphin to raise further funds from its shareholders. Brewin Dolphin used its extensive City relationships to deliver a broad and supportive shareholder base of high quality institutions many of which continue to hold the stock.

The most significant transaction was the £180.6m offer for Isotron plc in February 2007. Isotron is a long established business that employed gamma irradiation technology for instrument decontamination. This complementary technology widened Synergy’s treatment portfolio and expanded the Group’s geographic coverage into new regions. Brewin Dolphin made the share based offer on behalf of Synergy, with a full cash alternative funded by a £220m debt package arranged by Brewin Dolphin. Initially hostile, the Isotron board ultimately recommended the offer which was backed by strong shareholder support.

If you would like to discuss this transaction please contact Andy Emmott on 0845 213 4736.