Last checked at 1 Dec 2017 07:00
For immediate release | 1 December 2017 |
ALLIANCE PHARMA PLC
("Alliance" or the "Group")
Acquisition of Ametop™
Alliance Pharma plc (AIM: APH), the specialty pharmaceutical company, announces that its wholly owned subsidiary, Alliance Pharmaceuticals Limited, has acquired all of the rights to Ametop from global medical technology business Smith & Nephew for a consideration of US$7.5 million.
Ametop is a topical anaesthetic gel product used for numbing the skin prior to intravenous injection or cannulation.
Smith & Nephew has been selling Ametop in the United Kingdom, Republic of Ireland (ROI), New Zealand and Canada for over 10 years. In the 12 months to 31 October 2017 the total sales of Ametop by Smith & Nephew were US$2.8 million with approximately 75% of sales derived from the UK and ROI.
The consideration is being funded from existing cash and bank facilities, including drawdown from the Group's £35 million Revolving Credit Facility ("RCF"). After this drawdown, c.£11 million of the RCF remains available to fund further acquisitions. The Group's adjusted net debt/EBITDA ratio will increase to approximately 2.3 times as at 31 December 2017 as a result of this drawdown and has recently agreed an increase in its debt covenant from 2.5 times to 3.0 times.
In addition to the Ametop rights, Alliance will be acquiring inventory which is expected to have a value of approximately US$0.4 million.
Commenting on the acquisition, John Dawson, Alliance Pharma's Chief Executive, said: "We are delighted to acquire Ametop, an attractive and established brand. The acquisition will be immediately earnings enhancing, accretive to our underlying return on invested capital, and it fits well in our existing bedrock business operations."
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.
For further information:
Alliance Pharma plc | + 44 (0) 1249 466966 |
John Dawson, Chief Executive Officer Peter Butterfield, Deputy Chief Executive Officer Andrew Franklin, Chief Financial Officer | |
www.alliancepharma.co.uk | |
Buchanan | + 44 (0) 20 7466 5000 |
Mark Court / Sophie Cowles | |
Numis Securities Limited | + 44 (0) 20 7260 1000 |
Nominated Adviser: Michael Meade / Freddie Barnfield | |
Corporate Broking: James Black / Toby Adcock | |
Investec Bank plc | +44 (0) 20 7597 5970 |
Corporate Finance: Daniel Adams / Ed Thomas Corporate Broking: Patrick Robb / Rob Baker
|
Notes to editors:
About Alliance Pharma
Alliance, founded in 1998, is an international speciality pharmaceutical company based in Chippenham, Wiltshire, UK. The Group has sales in more than 100 countries worldwide via direct sales, joint ventures and a network of distributors. Alliance has a strong track record of acquiring the rights to established niche products and it currently owns or licenses the rights to approximately 90 pharmaceutical and consumer healthcare products. The Group continues to explore opportunities to expand its product portfolio.
Alliance joined the AIM market of the London Stock Exchange in December 2003 and trades under the symbol APH.