LSL Pharma Group Inc. enters into LOI to acquire competitor
July 31, 2025
by CM Staff
Total consideration for the acquisition will range between $3 million and $3.3 million and involves a nominal cash payment as well as assumption of Target Co.'s bank debt.
BOUCHERVILLE — LSL PHARMA GROUP INC., a Canadian integrated pharmaceutical company, announces that it has entered into a Letter of Intent (LOI) to acquire a privately held, Quebec-based competing contract manufacturer specialized in the formulation and production of liquid and semi-solid natural and cosmetic products (Target Co). Target Co. and its shareholders are at arm’s length with LSL Pharma.
Total consideration for the acquisition will range between $3 million and $3.3 million and involves a nominal cash payment as well as assumption of Target Co.’s bank debt. The cash portion will be funded by the proceeds from the recently announced bank financing. LSL Pharma Group Inc. says that the transaction will enable it to realize material gain on acquisition. Once fully integrated, the Transaction is expected to increase LSL Pharma’s revenues by more than 20% on an annual basis by contributing $8-10 million to its consolidated revenues, the company said in a statement. LSL Pharma anticipates closing the Transaction by the end of Q3-2025.
Target Co. is based in the province of Quebec, manufactures and packages liquid and semi-solid products for the Canadian and international markets. The acquisition of Target Co. is reportedly complementary to LSL Pharma’s other contract development and manufacturing operations (CDMO), and will help strengthen existing client relationships.
“Following the highly successful acquisition of Virage Santé and Dermolab Pharma last year, we look forward to executing this additional transaction to further expand our CDMO operations, manufacturing capabilities and customer base as more and more Canadian companies are looking for local solutions to their supply chain requirements,” said François Roberge, President and Chief Executive Officer of LSL Pharma. “Target Co. has an excellent reputation as a contract manufacturer. We expect this transaction to be accretive once fully integrated, to generate significant synergies with our existing operations as well as leverage our head office infrastructure”, added Mr. Roberge.
