LONDON, UK: SkinBioTherapeutics plc (AIM: SBTX) has entered into an agreement to acquire the issued share capital of Dermatonics Limited, a specialist in innovative topical and dermatological products in the skincare/woundcare space.
The initial consideration is £1.68 million plus £1.25 million earn-out over three years, in a cash-free and debt-free acquisition. Completion will take place upon clearance of funds being drawn down from the CLN facility which is expected to take place no later than 25 January 2024.
This acquisition aligns directly with SkinBioTherapeutic’s stated strategy to seek accretive inorganic opportunities that provide immediate synergies and accelerated routes to market. In addition, the acquisition provides inorganic revenue growth and reduces losses at a Group level.
The company is in advanced negotiations and diligence to acquire a second company in a similar sector, with total consideration of less than £2 million, where cash flow is positive and there are business synergies; this acquisition is currently expected to be completed in Q1 2024.
Stuart Ashman, CEO of SkinBioTherapeutics, said: “We are delighted to announce our first acquisition as part of our ongoing consolidation strategy in the skincare and hygiene sectors.
“As we have said repeatedly, we have steered a careful course of finding revenue generating and profitable companies that also provide operational synergies to our underlying business. Dermatonics ticks all of these boxes.
“We also gain access to a great customer base including high street retail brands like Boots and Superdrug, plus e-commerce, including Amazon, and more specialist healthcare outlets. Importantly, for the longer term, we gain a platform to back our SkinBiotix™ technology into for our MediBiotix woundcare and skin healing pillar.
“We believe SkinBioTherapeutics and Dermatonics are very complementary as businesses, and we are looking forward to working with the Dermatonics team.”
Greg Andrell, CEO of Dermatonics, said: “We have grown Dermatonics over the past 16 years to become a well known and trusted set of brands in the specialist skincare / woundcare market. It makes total sense to us to combine forces with SkinBioTherapeutics who looks at skin care in a similar way to us; we focus on natural ingredients and SBTX focuses on the microbiome.
Together, we are stronger, with a broader range of products and an exciting SkinBio technology platform behind them, solid financial resources and scale to enjoy cost efficiencies and synergies. We are excited about the opportunity to become part of the SkinBioTherapeutics team.”
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