Acquisition of Collbio Limited, change of name to Collagen Solutions plc and readmission of the enlarged group to AIM.
Top 20 law firm DWF has advised Healthcare Investment Opportunities plc (HIO), an investment company focusing on the healthcare sector, and business law firm Turner Parkinson has advised the shareholders of Collbio Limited, the manufacturer of medical grade collagen components for use in regenerative medicine, medical care and in-vitro diagnostics, on HIO’s acquisition of Collbio and the readmission of the enlarged group to AIM. Zeus Capital is lead adviser, nominated adviser and broker to HIO. Corporate finance adviser Diagnostic Capital originated the transaction and provided lead advisory services to the shareholders of Collbio.
The acquisition of Collbio is a reverse takeover and the maximum consideration payable is £7.07 million, comprising £1.4 million in cash and £2.91 million in shares. A further £2.76 million will be payable (in cash and shares) depending on the achievement of certain performance criteria.
As part of the deal Collbio has agreed to acquire the assets and business of Collagen Solutions, the California-based provider of medical grade bovine collagen, corium and tendon, and Healthcare Investment Opportunities plc has also changed its name Collagen Solutions plc.
Alex Clarkson, chief executive of Diagnostic Capital explained: “The regenerative medicine market is growing rapidly and we were pleased to be able to support Stewart White and his plans to reunite with old colleagues based in California to create a uniquely positioned business able to supply R&D and biomaterial into this growing market.”
Ross Andrews, head of capital markets at Zeus Capital commented: “We were delighted to advise HIO on its first acquisition having raised £4 million for the Company in April 2013 to invest on healthcare focused opportunities. We believe that the opportunity exists for management to build a significant international business by assisting customers in expediting the transition of their products from development to manufacture through the provision of cost effective, functional collagen materials and devices across a range of clinical indications, for the ultimate benefit of providing effective and affordable treatment to patients.”
James Sheridan led a Turner Parkinson team who advised on the acquisition of Collagen Solutions by Collbio, and the sale of Collbio to HIO. Sheridan said: “Having advised Collbio earlier this year on the acquisition of the business, it is great to see Stewart White and his team grow the operation so quickly and to be able to pull together the Collagen Solutions deal as well.”
Director Lisa Stavropoulos, solicitor Lucy Shenton and solicitor Nick Hawthorne worked on the deal at DWF. Corporate partner Stephen Hadlow, solicitor Robin Hastings and solicitor Simon Weinberg made up the Turner Parkinson team.