(Alliance News) - Oxford BioMedica PLC on Monday said that it has entered a sale and purchase agreement with TSGH SAS for the acquisition of ABL Europe SAS.
Oxford BioMedica is an Oxfordshire, England-based gene and cell therapy group, while TSGH is a subsidiary of Institut Merieux SA.
The acquisition is for a consideration of EUR15 million, including EUR10 million of pre-completion cash funding from Institut Merieux in ABL Europe.
Institut Merieux has also made a commitment to provide Oxford BioMedica with EUR20 million of additional funding, to cover capital expenditure and potential operational losses in relation to the acquisition of ABL Europe
According to the firm, the ABL buy will help to broaden its footprint in the EU through facilities located in Lyon and Strasbourg in France. Additionally, the acquisition will up Oxford BioMedica's capacity in process and analytical development and early-stage manufacturing, as well as addressing increased client demand for process development.
ABL Europe currently works on more than ten cell and gene therapy programmes, and has forecasted revenues for the year ending December 31 of around EUR15 million.
Further, Institut Merieux - which already has a 3.3% stake in Oxford BioMedica - intends to increase this to 10% by the end of the third quarter.
Oxford BioMedica on Monday said it expects the ABL acquisition to be "immediately revenue accretive". The transaction is due to complete in the first quarter of next year, subject to regulatory approvals.
Oxford BioMedica shares were trading 0.9% higher at 169.45 pence each in London on Monday morning.
By Holly Beveridge, Alliance News reporter
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Oxford Biomedica (OXB)