The London Stock Exchange is bracing for another private takeover, as Wiltshire-based Alliance Pharma has been offered £349.7m in an all-cash deal.
The AIM-listed firm, a seller of over-the-counter drugs in more than 100 countries, has seen its board unanimously recommend the takeover by asset manager DBAY Advisors, as reported by City AM.
Following the announcement of the offer, the group’s stock price surged over 35 per cent in pre-market trading. The 62.5p share offer signifies a premium of approximately 41 per cent over Alliance Pharma stock’s price prior to the deal news.
This offer joins a series of takeover attempts of British companies by private equity and asset management firms, ranging from FTSE 100 giants like Darktrace to numerous smaller companies. Last year, over 45 London-listed firms were approached, agreed to, or completed acquisitions, with many originating from unlisted firms.
For Chippenham-based Alliance Pharma, while the deal may represent a premium to its current share price, it is nearly half its 2022 share price high. Since its listing in 2003, Alliance has shifted from a speciality pharmaceutical business towards consumer healthcare, with around 75 per cent of its revenue now derived from this sector.
The company’s new CEO, Nick Sedgwick, who took up his role in May 2024, has been implementing a turnaround plan but cited the cost of the plan as a key reason for the takeover.
“The Alliance directors recognise that delivering the new strategic plan outlined above will take significant time and investment to deliver its potential benefits,” the company explained. “Furthermore, a number of uncertainties exist around plan delivery, some of which are beyond Alliance’s control.”
It is also noted that in 2022, KPMG stepped down as Alliance’s auditor.