Midland medtech mounts £12m bid for rival in Birmingham advised deal
MIDLAND-based medtech Source BioScience is mounting a £12.2m bid to acquire rival pharmaceutical business Vindon Healthcare in a deal part advised out of Birmingham.
Diagnostic specialist Source Bioscience, which serves the healthcare and research markets, said the deal brought a “multitude of benefits” to both companies.
Source Bioscience, which is based in Nottingham, already owns 150,000 Vindon shares and wants to acquire the entire issued and to be issued share capital of the company.
The potential deal values the remaining 88,850,000 at 13.7p each, equivalent to £12.2m. Vindon has recommended to its shareholders that the offer be accepted.
Browne Jacobson has advised Source BioScience on the deal. The transaction team was led by corporate lawyer Mike Jackson, assisted by Head of Banking Paul Ray, Emma Hopkinson (Banking) and Sima Odedra (Corporate), all of who are based at the firm’s Birmingham office.
The LifeSciences division at Source BioScience provides core laboratory research support from conceptualisation to implementation, calling on a wide range of cutting-edge technology platforms including the world’s largest online catalogue of biomolecular tools.
Its Healthcare operations provide screening and reference laboratory diagnostic testing for cancer and other diseases and additional predictive testing for treatment optimisation for clinicians and patients.
Vindon, along with its subsidiaries, manufactures environmental control products for the pharmaceutical industry, life sciences and food sectors together with related services. It provides products and services for the management of temperature, humidity and light, where controlled storage is required. Its product range includes controlled environment rooms and storage chambers, blood bank storage units and plant growth chambers. The business serves clients in the UK, Ireland and the United States, especially Atlanta and southern California.
The deal would allow Source BioScience to expand into the US and improve cross-selling opportunities.
Nick Ash, CEO of Source BioScience, said: “The potential combination of Source BioScience and Vindon Healthcare brings a multitude of benefits to both companies; from extended geographic reach and in-house expertise, to a broader offering of products and services for our customers.
“As an enlarged group, there will be financial benefits and the opportunity to accelerate our growth. Having the support of the Vindon board for this transaction has been crucial to Source BioScience making this offer, and we look forward to informing our shareholders of further progress.”
Zeus Capital acted as financial adviser to Vindon and was led out of its Manchester office. Andrew Jones, Nick Cowles and Jamie Peel provided corporate finance advice.
