Completion of Acquisition

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Completion of Acquisition of Select Pharma Laboratories Ltd

Source BioScience plc (LSE:SBS), the international laboratory services and products business, announces that its £7.3 million acquisition of Select Pharma Laboratories Ltd (‘Select’) is now complete.

Highlights

  • The Directors believe that the acquisition creates one of Europe’s strongest and most comprehensive businesses for integrated stability storage and stability testing services with expertise in pharmaceutical testing and microbiological analyses for applications in therapeutics and healthcare products
  • The enlarged Group has the capability to offer an enhanced portfolio of bioanalytical laboratory services from facilities accredited by the Medicines and Healthcare products Regulatory Agency (‘MHRA’) and the US Food and Drug Administration (‘FDA’)
  • Significant opportunities for cross-selling and geographic expansion are apparent for the enlarged Group which will operate from ten facilities in five countries
  • To fund the acquisition, the Company raised £4.4 million in gross proceeds from existing and new investors, via a placing of new ordinary shares, and secured a new debt facility of £3.5 million
  • Initial consideration of £6.7 million will be satisfied by the use of the new debt facility and £3.2 million of the net proceeds of the placing
  • The acquisition is expected to be enhancing to underlying earnings per share in the first full year of ownership**

** This statement does not constitute a profit forecast nor should it be interpreted to mean that the earnings per share of Source BioScience for the first full year after the transaction will increase.

Dr Nick Ash, CEO of Source BioScience, said:

“We are delighted to have completed the acquisition of Select.  The acquisition provides the Company with the expertise and capability to provide stability testing services that are highly complementary with the Group’s existing stability storage services.

“The Select team will bring significant experience and knowledge which will enable the enlarged Group to meet increasing demand for stability and pharmaceutical batch release testing services, from a broad spectrum of customers and from territories that Source BioScience does not currently address.

“This acquisition fits squarely with our stated objective of continued expansion through targeted acquisitions, to enhance the breadth and depth of our portfolio of services, in conjunction with ongoing organic growth and development of the existing business.”

“The addition of Select to the Source BioScience group will extend our geographic reach and provide a broader offering of services for our existing and prospective customers, backed by increased in-house expertise.  Now that the acquisition process has concluded, we will integrate the Select business as quickly as possible and focus on crystallising the new opportunities apparent for the enlarged Group.”

Total Voting Rights

In accordance with the FCA's Disclosure and Transparency Rules Source BioScience confirms that as at 17 August 2015, following the admission of the new ordinary shares being issued in connection with the placing, the Company has 345,221,401 ordinary shares of 2 pence each in issue with no ordinary shares held in treasury.

The figure of 345,221,401 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change to their interest in, Source BioScience plc under the FCA’s Disclosure and Transparency Rules.  The voting rights of all ordinary shares in the Company rank pari passu and the Company does not hold any ordinary shares in treasury.

Find out more

 

For further information, please contact:

Source BioScience plc
Dr Nick Ash, CEO
Tel: +44 (0) 115 973 9010

 

N+1 Singer (Financial Advisor, Sponsor and Broker)
Aubrey Powell/James White
Tel: +44 (0)207 496 3000
www.n1singer.com