Tue, 08 Jun 2021 | BUSINESS SALE
South Wales-based BBI Healthcare (BBIH) has been sold to Venture Life Group for a potential sum of £36 million. This sum would represent approximately a 3.5x multiple of the firm’s most recent £10.2 million in revenue and a 13.8x multiple on its adjusted EBITDA of £2.6 million.
BBIH produces and markets healthcare products for the women’s health and energy/diabetes management sectors. Its offering includes the women’s health product Balance Activâ, which is sold through several international partners, its glucose supplement Glucogelâ (for the treatment of hypoglycemia) and the Liftâ range of glucose chewables, gels and shots. In addition to its headquarters in Crumlin, South Wales, the firm also operates a manufacturing site in Gnesta, Sweden.
The firm is being acquired from BBI Diagnostics Group for an initial £35 million payable in cash. The remaining £1 million is payable once a new BBIH women’s health product receives approval from the US’s FDA. Exponent Private Equity is the majority owner of BBI Diagnostics Group.
Venture Life Group CEO Jerry Randall commented: "This is a strong and significant strategic acquisition, and is expected to be immediately earnings enhancing for VLG.
"BBIH is a well-established, growing and profitable consumer healthcare business, with a strong offering both of its own brands and also customer brands. Products are currently sold or partnered in 27 countries, with a significant direct-to-retail presence in the UK, which will add to the already significant direct-to-retail presence VLG has in the UK."
Regarding the price of the deal, Randall added: “We are conscious that the headline purchase multiple against BBIH's 2020 EBITDA appears higher than our normal target, however, this is a strategic acquisition for us, and both I and the Board believe we have achieved value for money; we have acquired a growing business with multiple new revenue initiatives that are already impacting 2021 as well as a business where we have identified immediate cost savings to derive further value and one that soundly establishes us in two new verticals.”
“In addition to this, we expect to realise attractive revenue synergies. It is, therefore, our expectation that adjusted for a full year effect of immediate cost savings (and before we have achieved any revenue synergies), the acquisition would represent a high single digit EV/EBITDA multiple for FY21 and we expect further revenue growth in 2022 and beyond.”
Read more about M&A in the healthcare and medtech sector here.
Find businesses for sale here.
If you are looking for an exit, we can help!
This is a unique opportunity to acquire a pioneering and prestigious brand in the burgeoning cold-water therapy industry, renowned for its innovation and notable partnerships with big names like Gymshark and Alpine F1.
For sale is a well-established and profitable residential care home for the elderly, located in a picturesque East Midlands village.
This leading independent domiciliary care provider in South Yorkshire offers a robust management structure and a dedicated team, ensuring high levels of client satisfaction and operational efficiency.
FREEHOLD
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.