Alliance Pharma plc's wholly owned subsidiary Alliance Pharmaceuticals Limited has acquired Opus Group Holdings Limited (Opus), a healthcare distributor, for £8.0 million plus the net asset value of Opus at completion (estimated at £1.5 million).
The Opus group sells products for stoma care, including skin creams and cleansers, in the UK and Ireland.
In the twelve months to 31 March 2012 the turnover of the Opus group was £3.8 million and the pre-tax profit before directors' emoluments was £2.1 million.
The consideration is being funded from existing cash and bank facilities, including an £8.0 million drawdown from the Group's £20 million Revolving Credit Facility (RCF). This brings the utilisation of the RCF to £16.5 million.
The founders of Opus, Hugh Brady and John Williams, will continue their involvement in the business for six months. David Hope, Alliance's sales and marketing director for secondary care, will manage the Opus business.
Commenting on the acquisition, John Dawson, Alliance Pharma's chief executive, said: "We are very pleased to complete this second major acquisition of 2012. Opus is an exciting business with good growth potential that matches our business well in terms of customers and business drivers. It will be immediately earnings enhancing for 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.