Embecta Corp. (NASDAQ: EMBC) has announced its definitive agreement to acquire Owen Mumford Holdings Limited, a UK-based innovator and manufacturer of medical devices and drug-delivery technologies, in a transaction valued at up to £150 million. The acquisition is expected to position Embecta to participate in the rapidly expanding market for drug-delivery devices supporting generic and branded therapies and accelerate its transformation into a broad-based medical supplies company.
Under the terms of the agreement, Embecta will acquire Owen Mumford for an upfront cash payment of £100 million at closing, and up to an additional £50 million in performance-based payments based on net sales of the Aidaptus® next-generation auto-injector platform in the three-year period following the closing.
During fiscal year 2025, Owen Mumford generated net revenue of £69.4 million, with approximately 80% of its revenue coming from the UK and the US. This creates a significant opportunity for Embecta to leverage its global commercial infrastructure, call points, and distribution network to broaden the geographic reach and scale Owen Mumford's products worldwide.
The acquisition is expected to contribute to revenue growth in fiscal year 2027 and beyond, be immaterial to Embecta’s fiscal year 2027 adjusted operating income, and be accretive thereafter. It is also expected to be dilutive to adjusted net income in fiscal year 2027, immaterial to Embecta’s fiscal year 2028 adjusted net income, and accretive thereafter. Additionally, the company anticipates a high-single-digit return on invested capital by year four, with increasing contribution thereafter.
Embecta plans to finance the closing purchase price with the proceeds of borrowings under its revolving credit facility and remains committed to paying down debt and creating financial flexibility over the long term.
J.P. Morgan Securities LLC is serving as the financial advisor and A&O Shearman LLP is serving as legal counsel to Embecta, while Forvis Mazars LLP is serving as financial advisor and Mills & Reeve LLP is serving as legal counsel to Owen Mumford.
Embecta is a global company with approximately 2,000 employees around the globe, while Owen Mumford, founded in 1952 and headquartered in Oxfordshire, UK, has more than 70 years of innovation in healthcare device development.
The company intends to discuss this acquisition in more detail on its upcoming fiscal second quarter 2026 earnings conference call, to be held on May 5, 2026. Today the company's shares have moved -1.67% to a price of $12.39. Check out the company's full 8-K submission here.
