Clinigen Group plc: Clinigen to Acquire Link Healthcare to Strengthen Position across Asia, Africa and Australasia

BURTON-ON-TRENT, England--()--Clinigen Group plc ('Clinigen' or the 'Group', AIM:CLIN), the specialty global pharmaceutical company, has agreed to acquire Link Healthcare ('Link'), a specialist pharmaceutical and medical technology business focussed on the Asia, Africa and Australasia ('AAA') region, for an initial consideration of £44.5 million and a maximum of approximately £100 million based on achievement of milestones (the 'Acquisition').

Highlights

  • Link will significantly strengthen Clinigen's global footprint and position in the AAA region

    • The Group's Managed Access and Global Access divisions' global leadership position will be considerably strengthened in the AAA region with three key hubs in Singapore, South Africa and Australia and in Link's local operations in Hong Kong, Japan and New Zealand.

    • The Group will gain excellent local knowledge and expertise with Link's well-established pharmaceutical and medical technology customer bases, access to local target customers of pharmacists and key opinion leaders in these regions.

  • Link is being acquired on a debt-free cash-free basis, for the following:

    • initial consideration of £44.5 million, comprising £22.25 million in cash and the allotment of 3,102,558 new Clinigen shares, payable at Completion

    • additional deferred consideration of up to £55.5 million in cash if earn out targets are achieved in the years ending 30 June 2016 and 2017

  • For the financial year ended 31 March 2015, Link achieved revenue of £31.6 million and EBITDA of £4.2 million

  • The Acquisition is expected to be immediately earnings enhancing

  • The initial cash consideration will be financed from the Group's existing debt facilities

  • John Bacon, Group Chairman and Founder of Link, will be joining the Clinigen Board as a non-executive director upon Completion of the Acquisition, following the AGM

  • The Group has also today published its results for the year to 30 June 2015 which highlight the advances in its strategic priorities, with underlying EBITDA up 20% – see separate release

Peter George, Chief Executive Officer of Clinigen, said:

"This strategic acquisition is a key step in our ambitions to strengthen and broaden our international distribution network across the AAA region - Asia, Africa and Australasia."

"Link, which is located in the three key hubs of Singapore, South Africa and Australia, has excellent local knowledge and connections as well as established customers."

"There is a strong, and increasing, demand for hospital-based oncology, anti-infective, orphan and other crucial drugs in pharmerging markets. Link will enable us to directly supply much needed, but not always licensed, medicines into these growing markets."

"Link will also support our underlying philosophy of getting the right drug to the right patient at the right time regardless of the location anywhere in the world."

John Bacon, Group Chairman and Founder of Link, added,

"Becoming part of Clinigen's impressive, world-leading business makes perfect sense to us. We share similar visions and values to deliver essential medicines where they might not be available due to licensing or a lack of supply."

"By combining our expertise and geographical footprints, we are well placed to benefit from the tremendous opportunities for growth in new markets and on a global basis."

 

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