Speciality pharmaceutical firm Alliance Pharma is to take on more staff and massively increase exports after buying a range of skin treatments in a £132.2m deal.
The Chippenham-based firm yesterday snapped up rival Sinclair IS Pharma’s dermatology portfolio of 27 products in a move that effectively doubles the size of the business. 
Exports of the products will widen Alliance’s global reach from 30 countries to 85 Alliance’s 85 staff will grow with the arrival of around 40 from London-based Sinclair. It also aims to recruit up to a further 25 people.
Alliance, which specialises in acquiring and developing niche treatments, said it expects the acquisition to “significantly” add to its earnings next year.
The firm, which already has a base in Germany, will now also have offices in France and Italy. The deal will take the firm into North Africa and the Middle East for the first time and expand its business in the fast-growing China and Asia-Pacific markets as well as the US and Brazil.
Around half of Alliance’s sales will now be overseas compared to around a fifth at present.
Alliance chief executive John Dawson said: “This acquisition represents a very significant development for Alliance. On completion, Alliance will be a significantly larger business with synergies in existing markets.
“Having over half of our business outside of the UK, we will have a greater ability to compete for international deals and in-licensing opportunities.”
Alliance’s existing portfolio includes dry skin treatment Hydromol, bladder cancer treatment ImmuCyst, the eye care product MacuShield, Ashton & Parsons Infants’ Powder – a natural remedy for teething pain – and Lypsyl lip balm.
The 27 products it is acquiring under the deal with Sinclair include five key growth brands – scar prevention gel Kelo-Cote, Flammacerium, which prevents infections in extensive burn wounds, mouth ulcer relief range Aloclair, stretch mark treatment Kelo-stretch and dermatitis cream Atopiclair.
In the year to June 30 the Sinclair portfolio generated revenues of £43.3m and earnings before exceptional items of £9m. Alliance estimates it will achieve cost savings of around £5m from the deal by the end of next year.
It is paying £127.5m for the products plus an estimated £4.7m for inventory. Some £78.5m will come through a new share placing with £54.2m to be drawn down under new loans.
Alliance made pre-tax profits of £5.5m in the six months to June 30 on revenue of £22.8m – up from £5.4m on £21.4m in the equivalent period last year.
