2nd Feb 2015 12:23
LONDON (Alliance News) - Alliance Pharma PLC said Monday that it has acquired MacuVision Europe Ltd for an initial GBP5.5 million plus the net asset value of MacuVision at completion, which is estimated at no value, and a deferred contingent consideration of up to GBP6.0 million.
MacuVision sells an eye care treatment for dry age-related macular degeneration and other eye conditions called MacuShield. It posted earnings before interest, tax, depreciation and amortisation of GBP900,000 for the year to end-March 2014, on revenue of GBP2.7 million.
Alliance Pharma is funding the initial consideration from its existing cash and bank facilities, including a GBP5.5 million drawdown of its GBP25 million revolving credit facility. The deferred consideration will be funded from cash generation and existing bank facilities.
The founders of MacuVision will continue their involvement for a year, and some key marketing staff will transfer to Alliance Pharma.
"We are delighted to start the year with this important acquisition, which brings both an immediate improvement in earnings and the potential of strong organic growth," said Chief Executive John Dawson in a statement.
Shares in Alliance Pharma are trading up 1.6% at 34.29 pence Monday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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