AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- SkinBioTherapeutics has acquired Bio-Tech Solutions Ltd for £1.25 million.
- The deal will be financed through a combination of a £950,000 loan from a shareholder, a subscription for new shares raising £250,000, and the use of the company's cash reserves.
- Following a successful fundraising round in August 2024, SkinBioTherapeutics maintains a strong financial position with a cash reserve of £1.9 million.
SkinBioTherapeutics plc (LSE:SBTX), a life science company dedicated to skin health, has announced the acquisition of Bio-Tech Solutions Ltd (BTS) for a total enterprise consideration of £1.25 million. This acquisition marks the second step in the Group's M&A strategy, enhancing its capabilities in manufacturing and packaging health, hygiene, and personal care products, as well as advancing the development of topical creams.
Details of the Acquisition
- Acquisition Terms: The total consideration for BTS will be paid in cash upon closing, which is expected shortly. Funding for the acquisition is structured through:
- A £950,000 loan from an existing shareholder.
- A subscription for 2,349,624 new Ordinary Shares priced at 10.64 pence, raising £250,000.
- Utilization of the Group's cash reserves.
- About Bio-Tech Solutions:
- Founded by Ian Moulds, BTS is a well-established manufacturer located in Driffield, Yorkshire.
- The company specializes in producing liquids, topical creams, lotions, tablets, and capsules, adhering to Good Manufacturing Practice (GMP) standards.
- BTS is ISO 9001-2015 and ISO 13485-2016 certified, ensuring high quality in its operations, which include manufacturing, packaging, formulation, and regulatory affairs.
- The firm has 23 employees involved in various essential functions.
- Financial Performance: BTS generated £2.1 million in revenue and £0.5 million in EBITDA for the year ending June 30, 2024. Management forecasts pro forma revenue of £3.0 million and EBITDA of £0.9 million for the 2024/25 financial year. The Group anticipates cost synergies from the acquisition, particularly in the production of Dermatonics products.
Financing the Acquisition
The financing for this acquisition is designed to preserve SkinBioTherapeutics' cash runway while allowing for the integration of BTS and the realization of synergies:
- Debt and Equity Financing: The acquisition will be financed primarily through a loan and equity contributions from long-term shareholder David Brierwood, which aids in conserving cash reserves.
- Cash Reserves: As of the end of September 2024, the Group's cash position stood at £1.9 million. Following the acquisition, SkinBioTherapeutics maintains sufficient cash runway to support operations through to Summer 2026 without additional income from Croda or other joint development agreements.
Financial Update
Following a successful fundraising in August 2024, the Group's financial position remains strong, allowing for continued operations and investment in growth:
- Forecasts and Revenue Expectations: The Group has not modified its revenue forecasts despite the acquisition. It remains reliant on successful commercial discussions with Sederma (part of Croda plc), which recently completed clinical studies and is moving towards full commercialization. Management emphasizes that any revenue forecasts are contingent upon the outcomes of these discussions scheduled for October and November.
