Bio company deal
Scots stem cell firm Collagen agrees £30.4m Rosen offer
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.
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.”