Alliance Pharma continues down acquisition path by adding Opus to its operations
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AIM-listed Alliance Pharma has closed its second acquisition of 2012 through the purchase of Opus Group.
Alliance Pharma, which ranked in the top 5 in Business XL's Top 50 Rising Stars 2011 ranking, has bought Opus Group.
The deal, worth £8 million and the £1.5 million net asset value of separate entity Opus, has been made through its wholly owned subsidiary Alliance Pharmaceuticals.
For the twelve months to 31 March 2012, Opus Group reported a turnover of £3.8 million and pre-tax profit before directors' emoluments of £2.1 million.
Opus Group is funding the deal through existing cash and bank facilities, including an £8 million drawdown from its £20 million revolving credit facility.
Its first acquisition of 2012 came back in August when it bought the antimalarial brands of Paludrine, Avloclor and Savarine from AstraZeneca.
Speaking to GrowthBusiness in 2011 following its inclusion in the Rising Stars ranking, CEO John Dawson said acquisitions had driven growth at the pharmaceuticals company.
'[The pharmaceuticals industry] is not affected by general economic factors as other sectors and there's a fair amount of innovation, so it's buoyant,' he added.
Speaking now, he comments, 'Opus is an exciting business with growth potential that matches our business well in terms of customers and business drivers. It will be immediately earnings enhancing for Alliance.'