Provexis buys sports nutrition biz for $12.95 million

Provexis buys sports nutrition biz for $12.95 million

Provexis has announced that it has entered into a conditional agreement to purchase the entire issued share capital of SiS. The acquisition of SiS is for a total consideration of £8.0 m.

Provexis, the life-science business that discovers, develops and licenses scientifically-proven functional food, medical food and dietary supplement technologies, has announced that it has entered into a conditional agreement to purchase the entire issued share capital of SiS (Science in Sport) (the "Acquisition").

SiS is a revenue generating, profitable company, which manufactures and sells sports nutrition products.

The acquisition of SiS is for a total consideration of £8.0 million ($12.95 million), of which £7.0m. will be satisfied in cash and a further £1m. will be satisfied in new ordinary Shares (fully paid).

For the financial year ended 31 December 2010, SiS had unaudited turnover of £4.6m. (2009: £4.3m. (unaudited)) and unaudited profit before tax of £0.2m. (2009: £0.4m. (unaudited)).

As at 31 December 2010, SiS had unaudited net assets of £0.96m. (2009: £0.8m. (unaudited)). Provexis believes the acquisition price is attractive in the context of recent deals in the sports nutrition market.

The global sports drink market had an estimated $24.5bn. of sales in 2010. In the same period in the UK, sales of sports drinks were estimated to be £220m., sports foods £30m. and sports supplements £70m. All three sectors in the UK have shown growth since 2006.

Provexis has also raised £2.5m. via a placing of 166,666,662 new ordinary shares of 0.1p each in the company ("Ordinary Shares") (the "Placing"), conditional, inter alia, on completion of the acquisition and receipt of all of the Placing proceeds from places by Evolution Securities.

Additionally, the company intends to undertake an open offer to shareholders of the company as soon as is reasonably practicable after the completion of the acquisition.

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