Acquisition Resources

British drug and alcohol testing company Concateno has announced that it has reached agreement on the terms of a recommended cash offer for Cozart, the drug testing specialist.

The offer is being made at 57.5 pence in cash for each Cozart, which values the existing issued ordinary share capital of Cozart at approximately £64.m. 

Commenting on the offer Keith Tozzi, Chairman of Concateno, said "With its focus on point of care testing and manufacturing capabilities we believe Cozart represents the ideal next step in Concateno's development. We believe that the acquisition of Cozart will enhance the ability of Concateno to exploit opportunities within our existing markets and to expand our operation further into Europe. The Concateno Board is particularly excited about the many opportunities that exist between the two businesses and the future development of the commercialization agreement with Philips."

Commenting on the Offer on behalf of Concateno’s Independent Directors, Sir Brian Richards, Chairman of Cozart said "Since listing on AIM in 2004 at 30p per share and with a market capitalisation of £27m, Cozart has expanded operationally and geographically, it has substantially increased its revenues and become a profitable business. We believe that this cash offer provides shareholders with a significant premium to the prevailing price before the announcement of the deal and reflects the growth potential of the business."

Collins Stewart is acting as financial adviser to Concateno and Numis is acting as financial adviser to Cozart.