Prime Highlights:
DBAY Advisors, an asset management firm, has agreed to acquire UK-based Alliance Pharma in an all-cash deal valued at £349.7 million ($429.6 million).
The 62.5 pence-per-share offer represents a 41% premium over Alliance Pharma’s closing stock price on Thursday.
The acquisition is expected to be completed in the first half of 2025, pending shareholder approval.
Key Background:
DBAY Advisors, an asset management firm, has agreed to acquire UK-based Alliance Pharma in a deal valued at approximately £349.7 million ($429.6 million). Under the terms of the agreement, Alliance Pharma shareholders will receive 62.5 pence per share in cash, which represents a 41% premium over the company’s stock price as of Thursday’s close. The acquisition is expected to be finalized in the first half of 2025, pending shareholder approval.
Alliance Pharma, a prominent player in the healthcare sector, focuses on marketing and distributing both over-the-counter consumer healthcare products and prescription medications across Europe, North America, and the Asia-Pacific region. This acquisition is part of a broader trend of UK-based companies being targeted for buyouts by international firms.
The board of Alliance Pharma has expressed its unanimous support for the deal, with plans to recommend that shareholders vote in favor of the acquisition. This endorsement from the board is expected to facilitate the smooth progression of the transaction.
The acquisition comes amid a leadership transition at Alliance Pharma. In mid-2024, Nick Sedgwick was appointed CEO, taking over from the previous management. Under Sedgwick’s leadership, the company reported a 23% increase in its underlying pre-tax profit for the six months ending June 30, signaling positive performance despite challenges in the market.
The deal also highlights the growing interest from investment firms in the UK’s healthcare sector, which continues to attract significant international investment. DBAY Advisors’ acquisition of Alliance Pharma is seen as a strategic move to expand its portfolio in the healthcare and pharmaceuticals space, a sector that remains robust even amidst global economic uncertainties.
As the deal progresses, all eyes will be on how this acquisition impacts Alliance Pharma’s operational direction under DBAY’s ownership, and how it positions the company for future growth in the competitive global healthcare market. The transaction is subject to regulatory approval and the favorable vote of Alliance Pharma’s shareholders, with completion expected by mid-2025.
