York Pharma: Completion of EUR28.5 million acquisition
London, UK, 1 October 2008 York Pharma (AIM:YRK), the specialist dermatology pharmaceutical company, announces today that it has completed the acquisition announced on 4 July 2008 of the sales and worldwide commercial rights to two leading dermatological/wound care products, Flammazine and Flammacerium , from Solvay Pharmaceuticals B.V. ("Solvay") for EUR28.5 million ("the Acquisition").
Key points:
Acquisition completed of the current sales and worldwide commercial rights to Flammazine and Flammacerium from Solvay for a total consideration of EUR28.5 million (circa £22.4 million). Consideration is payable by way of an immediate payment of EUR17.0 million and a further payment of EUR11.5 million, on or before 31 December 2008.
Flammazine and Flammacerium are leading, established dermatological brands indicated for the prevention and treatment of infections in burn wounds and topical wound infections.
The brands are currently approved and sold in 21 countries and generate combined annual revenues of approximately £8.5 million, which York Pharma plans to grow through active promotion and geographic expansion.
The acquisition will leverage York Pharma's sales and marketing infrastructure and will enable the Company tobecome self-financing in the first full year of trading following the acquisition.
The Company has concluded terms for a multi currency financing package the equivalent of circa £14.4 million to fund the Acquisition, achieved by the issuance of EUR 14 million of senior debt and the granting in two stages of a total of US$6 million of convertible subordinated unsecured loan notes.
Additional funding of £3.9 million was raised in July by way of a conditional institutional placing by FinnCap of 8.9 million York Pharma 5p ordinary shares at a placing price of 44 pence per share ("the Placing"). The proceeds are being used to assist in funding the acquisition and to provide working capital for the enlarged group.
Terry Sadler, Chief Executive of York Pharma, said:
"We are delighted to have completed the acquisition of these leading brands. This is a transformational deal for York Pharma creating a leading international dermatology business with strong revenue growth potential and the ability to become self-financing next year. This acquisition also accelerates the Company's transition to profitability.
"Our existing shareholders have given us tremendous support. In particular Excalibur, led by Chris Evans, and Avlar Bioventures which have once more supported our business and enabled us to achieve this important acquisition despite the most turbulent market conditions experienced for many decades."
Published: 1st Oct 2008 - 13:20:26
Modified: 2nd Oct 2008 - 10:07:43
