27th Sep 2018 10:05
LONDON (Alliance News) - Clinigen Group PLC on Thursday announced a share placing to help pay for the acquisition of packaging and distribution services company CSM Parent Inc for up to USD240 million in cash and said that pretax profit more than doubled for the 2018 financial year.
The AIM-listed pharmaceutical company also announced the smaller purchase of privately owned Swiss speciality pharmaceutical business iQone Healthcare Holding. For this, Clinigen will pay an initial consideration of EUR7.5 million, split between EUR5.0 million in cash and EUR2.5 million in shares. There also will be an undisclosed deferred consideration based upon iQone's achievement of earnings targets.
For the year that ended June 30, Clinigen recorded pretax profit of GBP35.9 million, up from GBP14.1 million in the year ago period, on a revenue of GBP381.2 million and GBP302.3 million, respectively.
Adjusted earnings before interest, taxes, depreciation and amortisation - the company's preferred profit measure - jumped 17% to GBP76.0 million from GBP65.1 million.
The jump in annual earnings was attributed to strong performance by its commercial medicines unit, a contribution from its Quantum Pharma PLC acquisition, and cost controls.
For the new 2019 financial year, Clinigen intends to integrate recent product and corporate acquisitions to strengthen its geographical footprint. It has made a good start to the new year and remains well place to drive further growth across all business units.
The CSM acquisition consideration comprises of an initial consideration of USD150 million and further contingent consideration of USD90 million, both in cash. The deal consideration will be financed by new banking facilities and a GBP80 million equity placing.
Clinigen predicts the CSM Parent deal to result in GBP1 million of costs synergies and earnings per share accretive in first full year of ownership, before synergies.
The company plans to conduct the GBP80 million equity placing via a accelerated bookbuild process. Numis Securities Ltd and RBC Europe Ltd are acting as joint bookrunners in relation to the placing.
Clinigen declared a final dividend of 3.84p per share, up from 3.4p paid a year ago. Total dividend for the financial year has been upped by 12% to 5.6p per share from 5.0p.
Shares in Clinigen Group were down 9.4% at 846.50 pence each.
Related Shares:
CLIN.L