Æterna Laboratories Inc. announced that its 62 per cent-owned subsidiary, Atrium Biotechnologies Inc., has completed the acquisition of Pure Encapsulations Inc. (Pure) for approximately $50 million in cash. Based in the Boston area, Pure is a privately-held company focused mainly on the development, manufacturing and marketing of nutritional supplements for physicians and other healthcare professionals. With sales exceeding $25 million in 2003, Pure is among the leaders in this growing specialized sector, which generates annual sales of over $1 billion in the United States.
"The acquisition of Pure Encapsulations allows us to increase the scope of our activities in the United States by gaining access to a network of more than 36,000 physicians and other healthcare professionals while adding more than 270 quality products to our portfolio of nutritional supplements," said Luc Dupont, chief executive officer at Atrium Biotechnologies. "During the last few years, we have dedicated our resources to the successful development of a vast marketing network in more than 20 countries, particularly in Europe where we are well positioned. The acquisition of Pure in the US is a key step in our growth strategy aimed at positioning Atrium among the international leaders in its field."
According to Gilles Gagnon, president and chief executive officer at Æterna, "This strategic acquisition will support Atrium in establishing a critical mass and in substantially increasing its sales in the US Furthermore, it will greatly contribute in attaining Æterna's global growth objectives, and support its goal to be cash flow positive in 2004 while working toward profitability."
Atrium financed the acquisition through a credit facility of $27 million provided by Royal Bank of Canada, a subordinated loan of $13.4 million by Solidarity Fund QFL, and a subordinated loan of $6.7 million by Æterna. The balance was paid through available cash. Atrium will pursue Pure Encapulations' operations from its current facilities in the Boston area.