LONDON, UK: Venture Life (AIM: VLG) has acquired three new Ear-Nose-Throat (ENT) manufacturers through the acquisition of the entire issued share capital of the UK based company, HL Healthcare Limited for a complete consideration of £13 million.
The total consideration of £13.0 million will be settled by an preliminary money consideration of £8.0 million, £3.0 million contingent consideration based on income efficiency for the year ending 31 March 2023 and the issue of a £2.0 million subordinated mortgage note, due to mature in 2024.
The money consideration assumes HL is money and debt free different than normalised working capital, and is topic to a completion accounts adjustment. The acquisition will be funded from VLG’s existing money resources and its revolving credit score facility.
The Brands
The Brands, comprising of three approved ENT merchandise (two registered medical device spray merchandise and one registered beauty spray product) are:
· An olive oil-based product with a patent protected spray supply system for the discount and removal of ear wax, sold under the trademarked model names Earol, Vaxol and Audiol in different territories;
· An olive oil-based product with a patent protected spray supply system (plus some antibacterial components for the safety of the ear surfaces when swimming), sold under the trademarked model name of EarolSwim; and
· A saline product for nasal flushing sold under the trademarked model name Sterinase.
The Brands are sold on to wholesalers and retailers within the UK and to licensing companions internationally, through a distributor community throughout 23 countries located throughout Central and Eastern Europe, Canada, and parts of the Middle East.
HL Healthcare is the authorized producer of the Brands, that are made by a UK third-party manufacturer. As a half of this transaction, one worker will be retained, and the founder will be supporting the enterprise post completion.
The largest of the Brands is Earol, which is a number one name within the ear wax removal market (“EWR”) and is the #1 model within the UK pharmacy and #2 model within the UK grocery marketplace for EWR.
Earol has skilled significant growth over the final four to five years due to EWR and general ear care transitioning away from primary care to private audiology clinics. In the UK, The National Institute for Health and Care Excellence (NICE) has, for a number of years, recommended, on the British National Formulary, the use of olive oil and Earol spray, in particular, for the administration and removal of ear wax.
In addition to this, an ageing inhabitants and technological developments in listening to aids has elevated the demand for EWR and prophylactic ear care. The Earol product is delivered with a patented single metered dose, contains solely pure ingredients and is alcohol free, thus it has no direct impact on the performance of listening to aids throughout use.
International success has primarily been in Scandinavia, pushed by many consumers affected by dry pores and skin conditions, which incorporates these of the ear canal.
For the year ended 31 March 2022, HL generated reported EBITDA of £1.7 million on revenues of £4.5 million. Net assets at 31 March 2022 were £1.7 million. Net revenue after tax for the year was £1.4 million. For the interval 2018 – 2022 (31 March YE), HL delivered income CAGR of 14.8% and present year buying and selling is on-course to obtain additional growth.
Jerry Randall, CEO commented: “In line with our existing purchase and construct strategy, I am happy to be additional utilising our RCF in buying the Brands via this acquisition of HL. HL has carried out extraordinarily well and demand has risen regardless of the covid-19 pandemic and ongoing provide chain pressures.
Earol is already approved under the model new Medical Device Regulations (MDR), permitting us to focus on persevering with this growth within the UK and Europe. VLG is well positioned to leverage its organisation to develop the Brands and their profitability, to proceed this channel growth and, in particular, utilise each our UK retail and worldwide distribution relationships.
In addition to growth of the existing product portfolio, we have already recognized a number of thrilling new product development opportunities; following an anticipated swift integration, we glance ahead to exploiting the synergies and leveraging the alternatives these acquisitions bring”.
Mark Llewellyn, HL Founder commented: “We at HL Healthcare Ltd are thrilled to join the Venture Life Group. At HL we have designed, developed and distributed the Earol, EarolSwim and Sterinase brands, which have introduced significant clinical revenue to many consumers. It fills me with nice pride to know that through VLG’s professionalism, drive and ambition, in addition to their well-developed consumer sales, marketing and distribution network, that the advantages of these merchandise will be introduced to a a lot broader and diverse consumer market”.
Venture Life is an worldwide consumer self-care firm focused on developing, manufacturing and commercialising merchandise for the worldwide self-care market. With operations within the UK, Italy, The Netherlands and Sweden, the Venture Life Group’s product portfolio includes some key merchandise such because the UltraDEX and Dentyl oral care product ranges, the Balance Active vary within the space of women’s intimate healthcare, the Lift and Glucogel product ranges for hypoglycaemia, merchandise for fungal infections and proctology, and dermo-cosmetics for addressing the indicators of ageing. Its merchandise are sold in over ninety countries worldwide.