An undisclosed funds, managed by DBAY Advisors Limited, An undisclosed funds, managed by Baring Asset Management Limited, Edmond De Rothschild Equity Strategies IV Fund, a fund managed by Edmond de Rothschild Private Equity Management Ltd. and an undisclosed buyer reached an agreement to acquire remaining 72.05% stake in Alliance Pharma plc from Andrew Franklin and Richard Jones for approximately £250 million.
January 09, 2025
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An undisclosed funds, managed by DBAY Advisors Limited, An undisclosed funds, managed by Baring Asset Management Limited, Edmond De Rothschild Equity Strategies IV Fund, a fund managed by Edmond de Rothschild Private Equity Management Ltd. and an undisclosed buyer reached an agreement to acquire remaining 72.05% stake in Alliance Pharma plc (AIM:APH) from Andrew Franklin and Richard Jones for approximately £250 million on January 10, 2025. The Acquisition will be implemented by means of a court-sanctioned scheme of arrangement. The group of investors will acquire remaining 389,489,299 shares at a price of £0.625 per share. The acquisition will be carried out through Aegros Bidco Limited. The Bidco is owned 70.1% by DBAY Affiliates, 23.9% by Edmond De Rothschild Equity Strategies IV Fund and remaining 6% by TH Argo Holding S.C.Sp and undisclosed funds managed by Baring Asset Management Limited. The shareholders of Alliance can either elect cash or alternative option. Under the terms of the Acquisition and as an alternative to the Cash Offer, the shareholders may elect to participate in the Alternative Offer by exchanging some or all of their Scheme Shares for rollover loan notes issued by Bidco which will, subject to implementation of the Rollover ultimately be exchanged for B ordinary shares in the capital of Midco having the rights of B Shares. As part of cash consideration, £243.43 million is paid towards common equity and £3.59 million is paid towards options of Alliance Pharma plc.
The Cash Offer will be fully funded by a combination of equity to be invested by DBAY Affiliates and the ERES IV Fund, subordinated junior debt facilities to be made available to an indirect holding company of Bidco, Holdco 2, by certain third party-lenders. Bidco has received irrevocable undertakings in respect of a total of 260,911 Alliance Shares representing, in aggregate, approximately 0.07% of the Scheme Shares, and 0.05% of the Alliance Shares The Alliance Directors who hold Alliance Shares (being Andrew Franklin and Richard Jones) have irrevocably undertaken to vote (or, where applicable, procure voting) in favor of the Scheme at the Court Meeting and the Resolutions to be proposed at the General Meeting.
The transaction is subject to receipt of foreign investment clearances in France, Germany, Ireland and Italy, approval of offer by the shareholders of Alliance Pharma plc and subject to court approval. The deal has been approved by the board of directors of Bidco and Alliance Pharma plc. Upon completion, the shares of Alliance Pharma will be delisted from AIM. The transaction is expected to close in the first half of 2025.
Freddie Barnfield, Stuart Ord and Duncan Monteith of Numis Securities Limited acted as financial advisor to Alliance Pharma plc. Julian Oakley, Julien Baril and Chris Whittaker of Evercore Partners International LLP acted as financial advisor to Alliance Pharma plc. Gary Clarence and Harry Hargreaves of Investec Bank plc acted as financial advisor to DBAY Advisors Limited and Bidco. Travers Smith LLP acted as legal advisor to DBAY Advisors Limited and Bidco. Slaughter and May acted as legal advisor to Alliance Pharma plc. Link Market Services Limited acted as Registrar to Alliance Pharma plc in relation to the acquisition.
Alliance Pharma plc is a United Kingdom-based international consumer healthcare company. The principal activity of the Company is to act as a holding company. The principal activity of the Company is the acquisition, marketing and distribution of consumer healthcare and pharmaceutical products. Its segments include Consumer Healthcare brands and Prescription Medicines. Its Consumer Healthcare brands include the Kelo-Cote franchise, Amberen, Nizoral, MacuShield, Aloclair, Vamousse, and other consumer healthcare brands. Its Prescription Medicines include Hydromol, Flamma Franchise, Forceval and other prescription medicines. Its products include Aloclair Plus Gel, Aloclair Plus Spray, Aloclair Plus Mouthwash, Anbesol Adult Strength Gel, Anbesol Teething Gel, Anbesol Liquid, Atopiclair Cream, and Atopiclair Lotion. It holds marketing rights to around 80 consumer healthcare brands and prescription medicines, which are sold worldwide in more than 100 countries.
An undisclosed funds, managed by DBAY Advisors Limited, An undisclosed funds, managed by Baring Asset Management Limited, Edmond De Rothschild Equity Strategies IV Fund, a fund managed by Edmond de Rothschild Private Equity Management Ltd. and an undisclosed buyer reached an agreement to acquire remaining 72.05% stake in Alliance Pharma plc from Andrew Franklin and Richard Jones for approximately £250 million.