Alliance Pharma agrees to £362m acquisition by DBAY

Jenna Philpott

Mon, Mar 10, 2025, 5:50 AM 2 min read

UK-based Alliance Pharma has agreed to a last accrued currency connection from plus absorption institution DBAY Advisors, valuing the erstwhile astatine astir £362m ($467.5m).

The offer, made done a recently formed institution called Aegres Bidco Limited, volition spot DBAY get each shares successful Alliance, but those it already owns done its affiliates, for 64.75p per share. This represents a 3.6% summation from DBAY’s archetypal connection of 62.5p per stock successful January 2025 and a 46% premium connected Alliance’s stock terms arsenic of 9 January 2025, the time earlier the connection play began.

Alliance Pharma specialises successful the selling and organisation of user healthcare products and medicine medicines. Its portfolio includes Kelo-Cote, a scar treatment; and Anbesol (benzocaine), an oral symptom alleviation product.

DBAY initially approached Alliance past year, pursuing a bid of challenges faced by the company, including the delayed work of its yearly results and the resignation of its CEO Peter Butterfield. Having gradually accrued its involvement successful the institution implicit 2 years, DBAY present holds a 27.9% stock of Alliance.

In its archetypal takeover offer, DBAY stated that it believed Alliance had “strong aboriginal prospects” but required important operational changes and accrued concern to maximise its maturation potential. The plus absorption institution argued that specified changes would beryllium much efficaciously implemented distant from the pressures of the nationalist market.

In January 2025, Alliance’s committee of directors recommended shareholders judge the archetypal connection of 62.5p per share. However, aft receiving feedback from shareholders, the scheduled wide gathering past period was adjourned to let for further discussions.

According to a 10 March filing connected the London Stock Exchange, DBAY volition money the acquisition done a operation of equity investments from its affiliated funds and outer financing, with a tiny information of shares successful Midco, the genitor institution of Bidco, being offered to definite lenders.

Shareholders are expected to ballot connected the connection astatine a rescheduled gathering connected 13 March 2025. If approved, the woody is anticipated to beryllium completed successful the archetypal fractional of 2025, resulting successful Alliance Pharma becoming a privately owned institution nether DBAY’s control.

In September 2024, Alliance reported underlying gross of £84m for the six months to 30 June 2024, reflecting an summation from £81.4m successful the aforesaid play the erstwhile year. Profit earlier taxation besides roseate year-on-year, reaching £12.7m compared to £10.3m successful 2023.

"Alliance Pharma agrees to £362m acquisition by DBAY" was primitively created and published by Pharmaceutical Technology, a GlobalData owned brand.