Sinclair IS Pharma to sell non-aesthetics business to Alliance Pharma

Sinclair said the sale creates an aesthetics firm, with high gross margins recorded in full year 2015.

The company’s pro-forma net cash position of £82m will allow it to invest in future growth opportunities and cover milestone payments from acquisitions.

Under the deal, Alliance Pharma will acquire 27 products, materially increasing the scale of its business.

The transaction also includes wound care products Kelo-cote, Flammazine, Flammacerium and Aloclair; skin care products Kelo-Stretch, Atopiclair, Fazol, Papulex and Oxyplastine and hospital products Haemopressin and Optiflo.

The non-aesthetics business being sold generated revenues of £43.3m, gross profit of £22.3m and EBITDA of £9m for the year ended 30 June 2015.

Sinclair IS Pharma CEO Chris Spooner said: In-market sales data shows that the growth rate of our Aesthetics portfolio has accelerated throughout 2015 and is now trending at c.40%.

"The disposal substantially reduces business complexity and transforms Sinclair’s balance sheet."

Alliance Pharma said the agreement will boost its presence outside the UK and provide an improved platform for further corporate development.

Alliance Pharma chief executive John Dawson said: "This Acquisition represents a very significant development for Alliance. On completion, Alliance will be a significantly larger business with synergies in existing markets.

"Having over half of our business outside of the UK, we will have a greater ability to compete for international deals and in-licensing opportunities."

Image: Alliance Pharma’s conditional agreement with Sinclair IS Pharma includes the acquisition of certain assets and businesses principally focused on dermatology. Photo: courtesy of adamr/FreeDigitalPhotos.net.