Proposed acquisition of Select Pharma Laboratories by Source BioScience

Source BioScience

Source BioScience, the international laboratory services and products business on Kingsway Business Park in Rochdale, has conditionally agreed to acquire the entire issued share capital of Select Pharma Laboratories Ltd (‘Select’) for a total cash consideration of up to £7.3 million.

The proposed acquisition is a Class 1 transaction under the Listing Rules and is therefore conditional upon the approval of the company’s shareholders at a General Meeting.

The proposed acquisition is being part funded by the issue of 31,383,749 new ordinary shares, representing approximately 10% of the current issued share capital, at an undiscounted placing price of 14p per share.

Dr Nick Ash, CEO of Source BioScience, said: “The proposed acquisition of Select will provide the Company with the expertise and capability to provide stability testing services that are highly complementary with the Group’s existing stability storage services.

“The Select team will bring significant experience and knowledge which will enable the group to meet increasing demand for stability and pharmaceutical batch release testing services, from a broad spectrum of customers and from territories that Source BioScience does not currently address.

“This proposed acquisition fits squarely with our stated objective of continued expansion through targeted acquisitions, to enhance the breadth and depth of our portfolio of services, in conjunction with ongoing organic growth and development of the existing business.”