LONDON: SkinBioTherapeutics plc (AIM: SBTX), a life science company focused on skin health, announced the acquisition of the entire share capital of Bio-Tech Solutions Ltd (BTS) for a total enterprise consideration of £1.25m payable in cash on closing.

BTS is the second acquisition of the Group’s M&A strategy and brings the capabilities of manufacturing and packaging of health, hygiene and personal care products, and a future development platform for advanced topical creams.

The acquisition is being funded by a loan of £950,000 with an existing shareholder and a subscription for 2,349,624 new Ordinary Shares at 10.64p raising £250,000, as well as utilisation of Group cash reserves. 

BTS is a well-established manufacturer and supplier of health, hygiene and personal care products based in Driffield, Yorkshire, founded by Ian Moulds.

The business has capacity to produce liquids, topical creams and lotions as well as tablets and capsules, manufactures to GMP standards, and the company is ISO certified – 9001-2015 and ISO 13485 – 2016 (Medical Devices) with quality control facilities. The company has 23 employees involved in manufacturing, packaging, formulation, regulatory affairs and back office.

BTS delivered £2.1m of revenue and £0.5m of EBITDA for the year ending 30 June 2024.  Based on latest management accounts, it is forecasted to deliver £3.0m of proforma revenue and £0.9m of proforma EBITDA in the 2024/25 financial year.

Management anticipates that it will provide cost synergies to the Group, initially through the manufacture of Dermatonics products which has been established as part of the due diligence process.  This acquisition also provides the potential for a future development platform for advanced topical creams and capsules.  Further details of BTS are set out in the Appendix below.

The consideration for the acquisition is being funded through debt and equity provided by long term shareholder, David Brierwood, as well as Group cash reserves. The use of the loan and equity element preserves the Group’s cash runway, and allows time for integration and realisation of synergies.