|
Venture Life Group PLC on Thursday said it had acquired three new ear-nose-throat brands after buying HL Healthcare Ltd for £13.0 million.
The Berkshire, England-based self-care product manufacturer and distributor said the total amount includes an initial consideration of £8.0 million alongside a £3.0 million contingent consideration based on revenue performance and the issue of a £2.0 million subordinated loan note, which matures in 2024.
The deal will be funded from Venture Life’s existing cash resources and its revolving credit facility.
The three brands are: Earol - also known as Vaxol and Audiol depending on the territory - an olive oil-based product for the reduction and removal of ear wax; Earolswim, a saline product for nasal flushing; and Sterinase, an olive oil-based product for the protection of ear surfaces when swimming.
The brands are sold directly to wholesalers and retailers in the UK and to licensing partners internationally, through a distributor network across 23 countries located across Central and Eastern Europe, Canada, and parts of the Middle East.
For the year ended March 31, HL Healthcare generated earnings before interest, taxation, depreciation and amortisation of £1.7 million with revenue of £4.5 million.
Chief Executive Officer Jerry Randall commented: ‘In line with our existing buy and build strategy, I am pleased to be further utilising our revolving credit facility in acquiring the brands via this acquisition of HL. HL has performed extremely well and demand has risen despite the Covid-19 pandemic and ongoing supply chain pressures.’
Venture Life also issued a trading update, saying it had signed a new long term distribution agreement with Blau Farmaceutica in Brazil.
The launch is scheduled for the first half of 2023. Blau is the number one pharmaceutical company in the non-retail market in Brazil, Venture Life said, with more than 1,500 employees and revenue of around £270 million.
The board remains confident that it is on track to deliver revenue and adjusted Ebitda in line with market expectations.
Shares in Venture Life were trading 17% higher at 30.90 pence each in London on Thursday morning.
Copyright 2022 Alliance News Limited. All Rights Reserved.
|
