Netherlands medicine supplier acquired by UK's Venture Life Group for around £5m

Product developer and manufacturer Venture Life Group plc has acquired Netherlands-based PharmaSource BV.

PharmaSource is a development and distribution business. Venture Life has agreed to acquire the entire issued share capital of PharmaSource BV, for an initial consideration of €5.23m, and deferred contingent consideration of up to €1.27m.

These payments will be funded entirely from the company’s existing cash resources, and the acquisition is expected to be immediately earnings accretive. The acquisition is also subject to conditions and price adjustment for cash and debt.

PharmaSource owns a number of medical device products in key therapeutic areas including fungal nail infections, wart removal and women’s health.

These products are distributed both through retail pharmacies in the Netherlands and through key international distribution partners outside of the Netherlands, including the UK, Germany, the Nordics, Belgium and France.

Completion of this acquisition is conditional on the receipt of some regulatory documentation from the Notified Body in relation to one of the PharmaSource products, which is expected to be received shortly.

Jerry Randall, CEO of Venture Life Group, said: “We are delighted to acquire this high quality, growing and profitable business, which gives us our first European footprint directly into the retailer market.

“Once completed, the acquisition should be immediately earnings enhancing for Venture Life, is being funded totally from our existing cash resources and will benefit from the operational leverage we can bring.

“The acquisition brings an excellent range of products and customer relationships to Venture Life, which we expect to be able to leverage through our existing products and relationships further.

“We see this as another excellent add-on to our existing business, that we can further grow and develop within our existing structure.”