Business
Acquisition and Trading Update
Acquisition and Trading Update.
About this update from Venture Life Group Plc
[{"type":"text","content":"\n \nRNS Number : 4009X Venture Life Group PLC 19 December 2019 \n\nRNS \n19 December 2019\nVenture Life Group plc\n(\"Venture Life\" or the \"Group\")\nAcquisition and trading update\nEarnings enhancing acquisition of PharmaSource BV, an established Netherlands based development and distribution business\nTrading update\n \nVenture Life Group plc (AIM: VLG), a leader in developing, manufacturing and commercialising products for the international self-care market, announces the acquisition of PharmaSource BV, a Netherlands based development and distribution business, and provides a trading update for the year ending 31 December 2019.\n \nAcquisition of PharmaSource BV\nVenture Life announces that it has agreed to acquire the entire issued share capital of PharmaSource BV (\"PharmaSource\"), for an initial consideration of €5.23 million, and deferred contingent consideration of up to €1.27 million. These payments will be funded entirely from the Company's existing cash resources, and the acquisition is expected to be immediately earnings accretive. The acquisition is also subject to conditions and price adjustment for cash and debt.\n \nPharmaSource owns a number of medical device products in key therapeutic areas including fungal nail infections, wart removal and women's health. These products are distributed both through retail pharmacies in the Netherlands and through key international distribution partners outside of the Netherlands, including the UK, Germany, the Nordics, Belgium and France. Strategically, this acquisition will enable the Company to broaden its product range and extend its global reach by providing additional retailers and distribution partners to its existing partner network.\n \nPharmaSource is a growing business and revenues for the year ending 31 December 2019 are expected to be in excess of €2.5 million (2018: €1.8 million), with Profit Before Tax in excess of €0.9 million (2018: €0.5 million). It is expected to have gross assets of around £0.6 million at completion. PharmaSource owns various medical device registrations, for products marketed under several different brand names. Once the post-completion integration process gets underway, there are expected to be strong synergistic benefits of the acquisition for the Venture Life Group going forward, anticipated to enable...