Life Therapeutics Acquires Pyramid Biological Corporation
Atlanta, GA and Sydney, Australia - Life Therapeutics announced recently a definitive Letter of Intent to acquire privately-held Los Angeles-based Pyramid Biological Corporation for US$13 million plus assumption of US$7 million debt. An additional $US5 million is subject to milestones. The acquisition is expected to close in mid-August.
"Pyramid is a leading plasma and biodiagnostic supplier with employees and facilities of the highest quality. Combined with our current operations, the company will now have 13 plasma collection centers in eight states with 380 employees. We anticipate this acquisition will result in a significant increase in our company's FY2006 annual sales and profits," said Dr. Hari Nair, Chief Executive Office and Managing Director of Life Therapeutics. "Additionally, we expect to achieve significant cost savings brought about by synergies with the integration of Pyramid. This acquisition will also allow us to expand our market share of the normal source plasma market," added Dr. Nair.
The acquisition will allow Life Therapeutics to significantly increase its plasma collection capacity and expand its share of the global hyperimmune plasma and biodiagnostic markets. With this acquisition, Life Therapeutics now forecasts projected sales for its US fiscal year 2006 at US$54.8 million (A$74 million) with a projected earnings of US$7.4 million (A$10 million) EBITDA. This projection is based on significant long term plasma supply contracts with major plasma fractionators.
"This is a major acquisition for our company, and directly supports our strategic plan to become a leading manufacturer of niche therapeutics. Essentially, this acquisition will complete the transformation of our company from one with limited small R&D revenue to substantial revenues and profits," added John Manusu, CFO of Life Therapeutics.
Ms. Jeanette Porretta, President of Pyramid Biological Corporation, said, "I am happy that our two companies have come together. Collectively, we will make a large impact on the market place in a market which is currently on the start of an upswing."
SOURCE: Life Therapeutics