EBOS GROUP LIMITED — Capital/Financing Update 2019

Oct 14, 2019

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15 October 2019

NZX/ASX Code: EBO

EBOS Group enters medical devices sector via the acquisition of LMT and National Surgical

EBOS Group Limited (EBOS) is pleased to announce its entry into the Australian and New Zealand medical device sector following the strategic acquisition of the LMT (“Life. Movement. Technology.”) and National Surgical businesses.

The acquisition provides EBOS with an initial entry point and strong platform for growth into the A$8 billion Australian and New Zealand medical devices sector.

LMT and National Surgical were co-founded by Jon Mills and Kerry Lawford and over the last 24 years have built a strong presence in Australia and New Zealand providing products and services to the Orthopaedic, Spine, Neuro, ENT, Plastics and most recently the Sports Medicine community. The businesses have developed a niche in bringing innovative specialty products, produced by original equipment manufacturers (OEM’s), into Australia, New Zealand and the Pacific region.

EBOS Chief Executive Officer John Cullity said, “The acquisition represents an important development in the Group’s growth trajectory as it is the first step in building another significant platform to our Healthcare portfolio.

“Medical device distribution presents a natural adjacency to our existing capability and offers strong economic fundamentals and promising organic growth rates,” Mr Cullity said.

“Our strategy is to target specific therapeutic areas focused on ‘personalised healthcare’ which means quicker and more effective screening, diagnosis and treatment leading to a better healthcare service for our communities.

“Consistent with our proven strategy we will continue to grow our presence through further bolt-on acquisitions. As a truly independent partner we can provide long term growth opportunities to both existing and new OEM’s as we bring experienced management, capital resources and strong hospital relationships in the Australia and Zealand market,” Mr Cullity added.

Co-founders Jon Mills and Kerry Lawford said they were delighted that the respective businesses they founded have been purchased by EBOS Group, a healthcare company with a proven track record of adding value to their new acquisitions.

EBOS Group Limited. NZBN 9429031998840 Level 7, 737 Bourke Street, Docklands, Victoria 3008, Australia. PO Box 7300, Melbourne, Victoria 3004, Australia. Phone: +61 3 9918 5555, Fax: +61 3 9918 5588. www.ebosgroup.com

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“We look forward to working with a bigger team, with more capital and the ability to leverage EBOS’s strong relationships with healthcare networks throughout Australia and New Zealand to provide existing and new customers a wider scope of service,” they said.

The acquisition price was A$34 million and the business generates revenue of approximately A$40 million. The acquisition is not expected to have a material effect on FY20 earnings. The acquisition is expected to meet the Group’s return on capital employed hurdle of 15% within 2 years.

John Cullity Chief Executive Officer EBOS Group Limited

For further information, please contact:

Media:

New Zealand

Geoff Senescall, Senescall Akers +64 21 481 234

Investor Relations: Shaun Hughes CFO, EBOS Group Ltd +61 428 833 981

Australia:

James Aanensen PRX +61 410 518 590

About EBOS:

EBOS Group Limited is the largest and most diversified Australasian marketer, wholesaler and distributor of healthcare, medical and pharmaceutical products. It is also a leading marketer and distributor of recognised consumer products and animal care brands.

About LMT Surgical and National Surgical:

With more than 20 years’ experience, LMT & National Surgical have been providing products and services to the Orthopaedic, Spine, Neuro, ENT, Plastics and most recently the Sports Medicine community. The business offers a product portfolio which covers most pathologies and philosophies, required by members of the medical community and are directly involved in partnering with healthcare professionals, throughout their careers, to achieve the best outcomes for clinicians and their patients.

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