LONDON - Logistics Development Group plc (LDG) and Aegros Bidco Limited (Bidco) have agreed on the acquisition terms for Alliance Pharma (LON:ALAPH) plc, valuing the healthcare company at £337.9 million. The transaction is set to be executed through a court-sanctioned scheme of arrangement at a price of 62.5p per Alliance share.
Alliance Pharma, a global healthcare firm based in Chippenham, Wiltshire, employs over 290 people and specializes in marketing and distributing over-the-counter consumer healthcare and prescription products. As of June 30, 2024, the company reported net assets of £222.9 million and an Adjusted EBITDA of £45.0 million on revenues of £180.7 million for the year ended December 31, 2023.
LDG, through its subsidiary Fixtaia Limited, holds approximately 13.2% of Alliance's issued share capital, amounting to 71,165,281 shares. Under the acquisition agreement, LDG will receive an equivalent number of unlisted, non-voting B ordinary shares in Aegros Dominium Limited (Equityco), a holding company of Bidco, in exchange for its stake in Alliance.
Bidco, specifically formed for this acquisition, is controlled by funds advised or managed by DBAY Advisors Limited, which also acts as the investment manager for LDG. As a result, LDG is considered to be acting in concert with DBAY for the purposes of the acquisition.
The acquisition will not require any cash funding or contribution from LDG. The company has also expressed its intention to proceed with a further distribution to its shareholders through a tender offer, pending shareholder approval. This planned distribution is expected to remain unaffected by the acquisition, maintaining LDG's current cash position.
This strategic move represents a significant investment by LDG in Alliance Pharma, reflecting confidence in Alliance's market position and future prospects within the healthcare industry. The information is based on a press release statement.
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