24th Apr 2015 07:21
LONDON (Alliance News) - Clinigen Group PLC said Friday it has agreed to buy ethical unlicensed medicine supplier Idis Group Holdings Ltd for GBP225 million, which will be part-funded by a vendor placing to raise GBP135.0 million.
Clinigen will raise the funds through the placing of 27 million shares at a price of 500 pence per share.
Shares in Clinigen are trading up 10.1% at 578.37 pence Friday morning, one of the best performers in the AIM All-Share.
The remainder of the consideration will be funded from new debt facilities.
Clinigen said the acquisition will immediately add to earnings, and this level of enhancement is expected to improve further in 2017. It has identified yearly cost synergies of around GBP2.5 million, and believes there are further opportunities.
Idis posted adjusted earnings before interest, tax, depreciation and amortisation of GBP15.6 million for the year to end-February 2015, on revenue of GBP196.8 million.
"The acquisition will also accelerate our growth and gives us a much better balanced portfolio of businesses, whilst extending our unique business model," said Chief Executive Officer Peter George in a statement. "I am confident that, together with Idis, we have the right people to define and shape the unlicensed medicine supply market - an increasingly important health care sector for patients with unmet needs."
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
CLIN.L