Muckle LLP advises SkinBioTherapeutics on its latest acquisition
SkinBioTherapeutics plc, a life science company focused on skin health, acquired the entire share capital of Bio-Tech Solutions Limited (BTS), with support from our corporate and real estate teams.
BTS is a well-established manufacturer and supplier of health, hygiene and personal care products based in Driffield, Yorkshire, and is the second acquisition of SkinBioTherapeutics’ M&A strategy. The acquisition also provides the potential for a future development platform for advanced topical creams and capsules.
Buy and build strategy
Stuart Ashman, CEO of SkinBioTherapeutics plc, said: "This is the second acquisition we have made as part of our buy and build strategy to generate immediate and longer-term benefits to the SkinBioTherapeutics Group.
"As with our acquisition of Dermatonics earlier this year, this deal brings in revenues, positive EBITDA and cash, as well as providing the Group with cost synergies. We gain access to an important and varied customer base in the healthcare space with an excellent team which we intend to retain. The main rationale for the deal is obtaining regulatory-approved manufacturing facilities, which will underpin the expansion of our product portfolio. BTS brings us the capability to manufacture products ourselves and supports our other pillars for the longer term.
"In December 2023, I talked about "transforming the Group". It may have taken slightly longer than we had intended to deliver the second acquisition; however, with a projected annualised Group turnover in excess of £6.3m before any revenue from the Croda partnership, these two acquisitions provide us with a strong product portfolio and integrated manufacturing. I believe we can claim that the "transformation" has well and truly begun. This is another building block to the solid scientific and financial foundations of the Group, and with the successful completion of the Croda clinical studies, we are moving rapidly towards Group profitability.”
Good hands
Ian Moulds, Founder of Bio-Tech Solutions, said: "Building up BTS has been a life's work. As I reach retirement, I'm very happy to be handing it over to the SkinBioTherapeutics team, where it can become a fundamental part of a bigger entity. Stuart and his team have done extensive due diligence, and during this process, we have got to know each other very well. I fully support SkinBioTherapeutics' growth plans in the skin and personal healthcare sectors; BTS and its team are passing into good hands."
Legal support
Corporate partner Matthew Walsh and corporate solicitor Olivia Tindle supported the team at SkinBioTherapeutics with support from Beth Thompson and Claire Naughten from our real estate team.
Speaking on the deal, Matthew said: “We were delighted to support SkinBioTherapeutics on this next step in its strategy after the successful acquisition of Dermatonics earlier this year. SkinBioTherapeutics is an ambitious and growing North East-based business. We look forward to seeing it continue to expand and wish the team every success.”
Olivia added: “It was wonderful to support SkinBioTherapeutics again on this exciting transaction, and we look forward to working with Stuart, Manprit and the team as they continue with their growth strategy.
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