LSL Pharma Group acquires Target Co. for $2.5M
by CM Staff
The $2.5 million purchase price will be funded by the proceeds from the recently completed private placements.
BOUCHERVILLE — LSL Pharma Group INC. has announced that it has entered into a binding Letter of Intent (LOI) to acquire Quebec-based competing contract drug manufacturer (CDMO) specialized in the formulation, production, and marketing of natural products, Target Co.
The $2.5 million purchase price, to be paid in cash only, will be funded by the proceeds from the recently completed private placements, and includes a fully operational manufacturing plant.
The share purchase transaction is expected to increase LSL Group’s revenues by 15-20 per cent on an annual basis. LSL Pharma anticipates closing the transaction by the end of Q2-2024. Upon signing of the LOI, LSL Pharma was required to make a non-refundable payment of $100,000.
Target Co. is based in the province of Quebec and will be integrated into LSL Laboratory CDMO activities. Target Co. manufactures a range of natural products in liquid, powder, as well as in capsule forms which are sold under its own brands or as under private labels.
“This accretive transaction constitutes the first step in executing our growth strategy by expanding our CDMO operations, manufacturing capabilities and customer base,” said François Roberge, President and Chief Executive Officer of LSL Pharma.
“Target Co. is a profitable company with well-established brand names and an excellent reputation as a contract manufacturer. Its product offering, combined with that of our LSL Laboratory subsidiary, will allow us to significantly expand our presence in the fast-growing natural health products sector. We expect this transaction to generate important synergies with our existing operations as well as leveraging our head office infrastructure,”Roberge added.
