Alliance Pharma buys health care distributor

Friday, 19th October 2012

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The Chippenham-based company has acquired the business, which sells products for stoma care such as skin creams and cleansers, for £8m plus the net asset value of Opus at completion which is estimated at £1.5m.

The acquisition, which Alliance Pharma said is to be immediately earnings enhancing, is to be funded from existing cash and bank facilities. This includes an £8m drawdown from its £20m revolving credit facility, which brings the utilisation of the facility to £16.5m.

For the 12 months to 31 March 2012, the Opus group reported turnover of £3.8m and pre-tax profit before directors’ emoluments of £2.1m.

The founders of Opus, Hugh Brady and John Williams, will continue their involvement in the business for six months. David Hope, Alliance’s sales and marketing director for secondary care, will manage the Opus business.

John Dawson, Alliance Pharma’s chief executive, said: “We are very pleased to complete this second major acquisition of 2012. Opus is an exciting business with good growth potential that matches our business well in terms of customers and business drivers. It will be immediately earnings enhancing for Alliance.”

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