Last checked at 23 Mar 2011 07:01
For immediate release | 23 March 2011 |
ALLIANCE PHARMA PLC
("Alliance" or the "Company")
Proposed acquisition
Alliance Pharma plc (AIM: APH), the speciality pharmaceutical company, announces that its wholly owned subsidiary Alliance Pharmaceuticals Limited has conditionally agreed to buy the UK and Irish rights to the brands AnbesolTM and Ashton & ParsonsTM from a subsidiary of Reckitt Benckiser Group plc ("Reckitt Benckiser") for £2.55m cash consideration. Alliance intends to fund the acquisition by drawing a loan from the £20m Revolving Credit Facility ("RCF") that was put in place in November 2010 to fund acquisitions. The RCF is not currently utilised.
Anbesol is used to treat mouth ulcers, teething pains and denture irritation. Ashton & Parsons is used in infants for the symptomatic relief of pain and stomach upset caused by teething.
As part of the acquisition by Reckitt Benckiser of SSL International plc, Reckitt Benckiser plc has given commitments to the European Commission to divest Anbesol and Ashton & Parsons. The sale of the brands by Reckitt Benckiser to Alliance is conditional on the approval of the European Commission.
For the twelve months ended 31 December 2010 Anbesol and Ashton & Parsons sales were £1.3m and £0.8m respectively. Sales of Ashton & Parsons in the past few months have been somewhat lower than historically as a result of certain production issues which Alliance will be seeking to resolve. The gross margin rates of Anbesol and Ashton & Parsons are in line with other products in Alliance's existing portfolio.
Based on the contribution from Anbesol alone, the proposed acquisition is expected to be earnings enhancing in the current financial year.
For further information:
Alliance Pharma plc | + 44 (0) 1249 466966 |
John Dawson, Chief Executive | |
Richard Wright, Finance Director | |
www.alliancepharma.co.uk | |
Buchanan Communications | + 44 (0) 20 7466 5000 |
Mark Court / Jessica Fontaine | |
Numis Securities Limited | + 44 (0) 20 7260 1000 |
Nominated Adviser: Michael Meade / Simon Blank | |
Corporate Broking: David Poutney |
Notes to editors:
About Alliance
Alliance, founded in 1998, is an AIM listed speciality pharmaceutical company based in Chippenham, Wiltshire, UK. The Company has a strong track record of acquiring the rights to established niche products and owns, or licenses, the rights to more than 50 pharmaceutical products and continues to explore opportunities to expand the range.
Alliance's products are prescribed in the treatment of a wide range of conditions and include products used in the treatment of dermatological conditions, in oncology, in childbirth, in the prevention of heart disease, in Parkinson's disease, in nutrition and in nasal infections. Alliance's sales are mainly prescription driven. Its products are distributed to hospitals directly and to pharmaceutical wholesalers, which service both hospital and retail pharmacies with their prescription requirements.
Alliance joined the AIM market of the London Stock Exchange in December 2003 and trades under the symbol APH.