Ear, nose and throat healthcare brands acquired for £13m
Ear, nose and throat healthcare manufacturer HL Healthcare has been acquired for £13m by Venture Life.
The three brands under Warwick-based HL comprise of two registered medical device spray products and one registered cosmetic spray product.
The brands are sold directly to wholesalers and retailers in the UK and to licensing partners internationally, through a distributor network across 23 countries in Central and Eastern Europe, Canada, and parts of the Middle East.
HL is the legal manufacturer of the brands, which are made by a UK third-party manufacturer. As part of this transaction, one employee will be retained, and the founder will be supporting the business post completion.
The £13m will be settled by an initial cash consideration of £8m. Another £3m is contingent based on the revenue performance for the year ending 31 March 2023 and the issue of a £2m subordinated loan note, due to mature in 2024.
Jerry Randall, CEO of Venture Life said: “HL has performed extremely well and demand has risen despite the covid-19 pandemic and ongoing supply chain pressures.
“VLG is well positioned to leverage its organisation to develop the Brands and their profitability, to continue this channel growth and, in particular, utilise both our UK retail and international distribution relationships.
“In addition to growth of the existing product portfolio, we have already identified several exciting new product development opportunities; following an anticipated swift integration, we look forward to exploiting the synergies and leveraging the opportunities these acquisitions bring”.
The brands which comprise of three ear, nose and throat products are:
An olive oil-based product with a patent protected spray which helps to remove ear wax. It’s sold under the trademarked brand names of Earol, Vaxol and Audiol in different territories.
A second patent protected spray which helps to protest ear surfaces when swimming and is sold under the trademarked brand name of EarolSwim.
The last brand produces a saline product for nasal flushing sold under the trademarked brand name Sterinase.
Mark Llewellyn, HL Founder commented: “At HL we have designed, developed and distributed the Earol, EarolSwim and Sterinase brands, which have brought significant clinical benefit to many consumers.
“It fills me with great pride to know that through VLG’s professionalism, drive and ambition, as well as their well-developed consumer sales, marketing and distribution network, that the benefits of these products will be brought to a much broader and diverse consumer market”.