The Directors of Paragon Care Limited (PGC) are pleased to announce that the Company has entered into an agreement to acquire the business of Rapini Pty Ltd for a total consideration of $2.75 million.
Founded in 1990, the Rapini business specialises in the supply of Materials Management solutions, comprising of a comprehensive range of wire shelving and basket systems that offer a multitude of applications throughout the healthcare environment, In addition Rapini supply medical refrigeration systems as well as an extensive range of service carts and single/multi deck trolleys.
The inclusion of the Rapini suite of products further compliments the existing range of products Paragon Care supplies to the health and aged care sector via its subsidiaries Axishealth, Iona Medical Products and Volker Australia. Rapini is predominately Victorian focused and Paragon Care intends to grow the business with its existing national distribution network. Synergies and efficiencies will also be achieved via the integration of Rapini’s administration, purchasing and sales teams.
In commenting on this acquisition, Mark Simari, CEO of Paragon Care said “Rapini has developed a strong reputation delivering its suite of niche products into the medical sector as well as developing and nurturing long lasting relationships with its suppliers and clients. The acquisition of Rapini further delivers on Paragon’s strategy to grow its presence in the Health and Aged Care sector.”
The purchase price will comprise of a convertible note to the value of $1.675 million, 14.2mil fully paid ordinary shares in Paragon Care Limited valued at $425,000 followed by a second payment of $650k that will be made on the 30th June 2012.