LSL Pharma Group Enters Into Binding Agreement to Acquire Quebec Competitor
- Transaction expected to increase annual revenues by 15-20%
- Acquisition to boost overall profitability
- Transaction expected to close by end of Q2-24
BOUCHERVILLE, Québec, May 06, 2024 (GLOBE NEWSWIRE) -- LSL PHARMA GROUP INC. (TSXV: LSL) ("the Company" or "LSL Pharma"), a Canadian integrated pharmaceutical company, is pleased to announce that it has entered into a binding Letter of Intent ("LOI") to acquire profitable privately held, Quebec-based competing contract drug manufacturer ("CDMO") specialized in the formulation, production, and marketing of natural products ("Target Co") . Target Co. and its shareholders are at arm’s length from LSL Pharma.
The $2.5 million purchase price, to be paid in cash only, will be funded by the proceeds from the recently completed private placements, includes a fully operational manufacturing plant. The share purchase transaction is expected to increase LSL Group’s revenues by 15-20% on an annual basis. LSL Pharma anticipates closing the transaction by the end of Q2-2024. Upon signing of the LOI, LSL Pharma was required to make a non-refundable payment of $100,000.
Target Co. is based in the province of Quebec and will be integrated into LSL Laboratory CDMO activities. Target Co. manufactures a range of natural products in liquid, powder, as well as in capsule forms which are sold under its own brands or as under private labels.
"This accretive transaction constitutes the first step in executing our growth strategy by expanding our CDMO operations, manufacturing capabilities and customer base," said François Roberge, President and Chief Executive Officer of LSL Pharma. "Target Co. is a profitable company with well-established brand names and an excellent reputation as a contract manufacturer. Its product offering, combined with that of our LSL Laboratory subsidiary, will allow us to significantly expand our presence in the fast-growing natural health products sector. We expect this transaction to generate important synergies with our existing operations as well as leveraging our head office infrastructure", added Mr. Roberge.
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This press release may contain forward-looking statements as defined under applicable Canadian securities legislation. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "continue" or similar expressions. Forward-looking statements are based on a number of assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Corporation's ability to control or predict, that could cause actual results or performance to differ materially from those expressed or implied in such forward-looking statements. These risks and uncertainties include, but are not limited to, those identified in the Corporation's filings with Canadian securities regulatory authorities, such as legislative or regulatory developments, increased competition, technological change, and general economic conditions. All forward-looking statements made herein should be read in conjunction with such documents.
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ABOUT LSL PHARMA GROUP INC.
LSL Pharma Group Inc. is an integrated Canadian pharmaceutical company specializing in the development, manufacturing and commercialization of high-quality sterile ophthalmic pharmaceuticals, as well as natural health products in solid dosage forms. For further information, please visit the following website www.groupelslpharma.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CONTACT : François Roberge, President and Chief Executive Officer Telephone: (514) 664-7700 E-mail: investors@groupelslpharma.com Or Luc Mainville, Executive Vice President & Chief Financial Officer Telephone: (514) 664-7700 Ext. 301 E-mail: lmainville@groupelslpharma.com
