Alliance Pharma, the speciality pharmaceutical firm, has completed the £132.2m acquisition of rival Sinclair IS Pharma’s range of skincare products – a move that effectively doubles the size of the business.
Exports of the 27 products will widen Chippenham-based Alliance’s global reach from 30 countries to 85. Alliance’s 85 staff in Chippenham will grow with the arrival of around 40 from London-based Sinclair. It also aims to recruit up to a further 25 people.
When the acquisition was announced last month Alliance, which specialises in acquiring and developing niche treatments, said it expected it to “significantly” add to its earnings next year. 
The Sinclair products acquired under the deal 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.
They will be added to Alliance’s 60-strong existing portfolio which 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.
Some £100m of debt facilities to fund the acquisition have been provided by funding from Lloyds Bank Commercial Banking, The Royal Bank of Scotland (RBS) and Silicon Valley Bank (SVB).
Alliance chief executive John Dawson said: “The completion of this acquisition creates a much larger business for Alliance, with a significant part of its business outside of the UK.
“Lloyds Bank Commercial Banking, RBS and SVB have been instrumental in helping us secure the funding required to achieve this transformative deal, paving the way for the future international growth of Alliance by giving us a much greater ability to compete for international deals and in-licensing opportunities.”
Lloyds Bank Commercial Banking director of Thames Valley & South Mid Markets team, Peter Jackson, said: “The assets being acquired by Alliance greatly complement its existing activity and strategy and give it a much broader and more balanced portfolio, and a genuinely global reach.
“The acquisition will be genuinely transformative for Alliance and, we believe, will help it to continue to prosper on the international stage.
“Successful mid-market businesses like Alliance play a key part in driving the UK’s economic growth and Lloyds Bank is committed to helping them by providing the backing they need to grasp future growth opportunities such as this.”
RBS Corporate Banking senior relationship director Ian Bamber added “Alliance is one of our key clients in the region and we were keen to increase our support to the business to facilitate this transformational acquisition.”
SVB director, UK Corporate Banking, Roshan Wijayarathna, said: “We are delighted to be joining Alliance’s banking group at such an important juncture. This transformative acquisition marks a significant milestone in the company’s growth strategy and creates further geographic and product diversification, setting Alliance up for future expansion.
“The management team has demonstrated fantastic focus and diligence in completing this acquisition and Silicon Valley Bank looks forward to working with the team.”
