15th Apr 2014 15:41
LONDON (Alliance News) - Sinclair IS Pharma PLC Tuesday said it has agreed a deal to acquire private aesthetics company Silhouette for about USD117.0 million in cash plus royalties, in a move that will complete the build-out of the company's aesthetics business and enhance its technological position and growth prospects in collagen stimulation.
In a statement, the specialty pharmaceutical company said it will pay USD24.0 million when the deal completes, with the remaining USD93.0 million related to certain milestones being achieved and royalty buy back.
The deal will be financed through a combination of debt and equity. Sinclair said it has agreed to raise GBP19.5 million, net of expenses, by issuing 62.5 million shares at a 32 pence placing price, which is a 5.3% premium to the company's closing price on Monday. Sinclair has also entered into an amended facility agreement with Hayfin, which will provide a USD16.5 million gross facility in relation to the acquisition. It will draw down the entire facility for the initial payment.
Sinclair said the deal is expected to be slightly earnings accretive in the 2015 full-year and strongly accretive thereafter.
According to Sinclair, the acquisition is structured to manage risk and is largely contingent on Silhouette performing against expectations.
Nominated adviser and broker Peel Hunt is working on the placing.
"Our enlarged aesthetics portfolio provides us with the platform to outperform this fast growth market. Further, the group expects to increase significantly its exposure to key aesthetics markets, including the US, Korea, Russia, Brazil and Japan in addition to leveraging the existing aesthetics sales and marketing infrastructure in Europe," Chris Spooner, chief executive, said in a statement.
Sinclair IS shares Tuesday closed at 31.00 pence, up 2.1%.
By Samuel Agini; [email protected]; @samuelagini
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