Inditherm announces £7.2 million reverse takeover of Inspiration Healthcare

An award-winning business supplying specialist devices for paediatric, neonatal, and adult intensive care is being lined up for a reverse takeover.
Inspiration Healthcare, of Earl Shilton, looks set to join forces with AIM-listed, Rotherham medical equipment supplier Inditherm.
The reverse takeover will see Inditherm buy the entire share capital of the privately owned Leicestershire business.
Inditherm said the move will strengthen its position as a technology supplier to the NHS and overseas markets.
Reverse takeovers allow private companies like Inspiration to become publicly traded without resorting to an expensive initial public offering.
Shares in Inditherm initially doubled following today's announcement.
Its chairman Mark Abrahams said: "We have believed for some time that there is underlying value in Inditherm, but the combination of small scale and overhead costs have been a constraint.
"This transaction has the potential to unlock shareholder value and represents an excellent outcome to our review of strategic options which we have undertaken over the last year."
Inspiration was founded in 2003 and provides critical care and surgical products in more than 40 countries, including the UK, USA, Russia, Canada and India.
It has a range of own-branded critical care products and has a technical support business maintaining and repairing medical equipment.
In the year to January 31 it recorded revenue of £9.5 million – compared to £8.8 million a year earlier.
Earnings before tax and other costs were £1 million, compared to £600,000 the previous year.
Overseas sales account for a third of the company's business and several million pounds in turnover.
Last month it won the International Trade Award at the Leicester Mercury Business Awards.
The deal will depend on approval by Inditherm shareholders at a general meeting of the company on June 23.
The reverse takeover values Inspiration at £7.2 million, and the new company will be named Inspiration Healthcare Group plc.
Inditherm said Inspiration has an unbroken track record of year-on-year sales growth since 2003, while its range of own-branded critical care products complemented Inditherm's existing range.