Alliance Pharma of Wiltshire Acquires US Scar Treatment Brand in $19.4M Deal

A Wiltshire-based healthcare group has acquired a US scar treatment brand in a deal worth $19.4m (£14.8m).

Chippenham’s Alliance Pharma has purchased ScarAway and Kelo-cote’s US retail rights from Perrigo Company Plc.

The UK firm used cash from the group’s existing financial resources to acquire the two assets, he said.

ScarAway is a silicone-based brand, which has 12-month net sales of $10 million and a 28% market share, with an estimated current retail value of around $90 million per year, Alliance said. .

According to the Wiltshire company, the acquisition of the American brand “accelerates” the Alliance’s strategy in the United States.

Peter Butterfield, Managing Director of Alliance, said: “I am delighted to have completed such a strategically important and revenue-generating acquisition for Alliance, which creates our first fully global brand at Kelo-cote and significantly strengthens our presence in the largest consumer healthcare market. in the world.”

ScarAway and Kelo-cote generated combined EBITDA of approximately $2 million in the 12 months to February 28, 2022.

Alliance said it expected the acquisition to “immediately improve earnings,” with further strategic benefits expected in the coming years.

In the first full year of ownership, the acquisition is expected to generate a return on invested capital in excess of Alliance’s weighted average cost of capital, the Wiltshire company added.

Numis Securities and Invest Bank also participated in the operation.

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