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Scots stem cell firm Collagen agrees £30.4m Rosen offer

Collagen

The deal creates a business of ‘significant scale’

Collagen Solutions, the Glasgow-based stem cell company, is recommending a £30.4 million cash takeover from US agribusiness and food production company Rosen’s Diversified.

RDI, a US-based private company, is paying 6,5p per share, a 160% premium to the close on Wednesday.

Collagen put itself up for sale in April and the price represents a multiple of almost eight times revenues in the year to March.

RDI already owns an 18.7% stake in Collagen and has a strategic relationship in place with director Wade Rosen on the board.

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Agreement for the offer, announced yesterday, has already been received from shareholders representing around 43% its shares taking acceptances to 61.49%.

Chris Brinsmead, Collagen’s chairman said:  “Collagen has built a high-performance team and significant portfolio of customers and projects, well positioning the Company in the exciting regenerative biomaterials and tissue market.

“The offer from RDI recognises this strategic value and provides an attractive opportunity for shareholders to realise immediate value at a significant revenue multiple and premium to both the historical and prevailing share price.”

Jamal Rushdy, chief executive, added: “We believe RDI offers a compelling fit for Collagen, offering expanded opportunities for our employees, and a solid financial backing and broader offering to benefit our customers.

“We appreciate RDI’s recognition of the value of our global workforce and infrastructure as key to the continued success and growth of the company.”

Wade Rosen, director of RDI, added: “RDI’s acquisition of Collagen, when integrated with SLS, will create a business of significant scale in the tissue supply and engineering space.

“With highly complementary offerings and capabilities, the combination will reinforce SLS’s already robust position in the North American market, while Collagen’s international presence will also provide a strong platform for the enlarged group to extend its supply of porcine and bovine tissue into the EMEA and APAC regions.”



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