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AIM-listed nutrition specialist Science in Sport (LON:SIS) has proposed to acquire PhD Nutrition for a total consideration of £32 million consideration, of which £28.5 million will be payable in cash. The remainder of the consideration will in shares and the financing for the cash portion will be raised through the sale of newly issued stock.
Stephen Moon, CEO of Science in Sport, said: “The acquisition of PhD is highly complementary, doubles the size of our business and accelerates our ambition to become a global leader in premium performance nutrition. It is a compelling combination that will deliver a wider product offering, including premium protein, provide broader consumer reach and greater international presence, and dovetails our respective strengths in retail and e-commerce channels. Operating in a rapidly developing market, we see this transaction as an important step towards winning on the global stage. With the clear synergies and growth prospects of the combined group we anticipate delivering strong returns”.
The price of the shares dropped by 14.29% to 60p (as of 14:05 BST).