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The price of shares in AIM-listed care product firm Venture Life Group (LON:VLG) rose by 8.90% to 31.80p (as of 14:00 GMT) after it announced the purchase of Dutch medical device manufacturer PharmaSource. Management said the deal would help expand the firm’s product range and geographic reach.
CEO Jerry Randall commented: “We are delighted to acquire this high quality, growing and profitable business, which gives us our first European footprint directly into the retailer market. Once completed, the acquisition should be immediately earnings enhancing for Venture Life, is being funded totally from our existing cash resources and will benefit from the operational leverage we can bring. The acquisition brings an excellent range of products and customer relationships to Venture Life, which we expect to be able to leverage through our existing products and relationships further. We see this as another excellent add-on to our existing business, that we can further grow and develop within our existing structure.
“We expect to finish the year with revenues and profits ahead of 2018. Despite some one-off costs in the first half, we have been pleased with the performance of the wider Group, which has delivered good growth against a complex macro-economic backdrop. This performance, when enhanced by completion of this excellent acquisition opportunity on an earnings accretive basis in our profit and loss account for 2020, provides us with confidence for the year ahead, and makes us very well positioned for continued growth“.
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