Alliance Pharma PLC Acquisition of AmetopT (1025Y)
December 01 2017 - 2:01AM
UK Regulatory
TIDMAPH
RNS Number : 1025Y
Alliance Pharma PLC
01 December 2017
For immediate release 1 December 2017
ALLIANCE PHARMA PLC
("Alliance" or the "Group")
Acquisition of Ametop(TM)
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 GBP35 million
Revolving Credit Facility ("RCF"). After this drawdown, c.GBP11
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:
+ 44 (0) 1249
Alliance Pharma plc 466966
John Dawson, Chief Executive
Officer
Peter Butterfield, Deputy Chief
Executive Officer
Andrew Franklin, Chief Financial
Officer
www.alliancepharma.co.uk
+ 44 (0) 20 7466
Buchanan 5000
Mark Court / Sophie Cowles
+ 44 (0) 20 7260
Numis Securities Limited 1000
Nominated Adviser: Michael
Meade / Freddie Barnfield
Corporate Broking: James Black
/ Toby Adcock
+44 (0) 20 7597
Investec Bank plc 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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