Via Kristy Dorsey
After a £ 30.4 million cash bid to buy the business has now been approved in full, Scottish biomaterials specialist Collagen Solutions is going private.
Shares in AIM-quoted Collagen Solutions, which at its headquarters in Glasgow employs about 50 employees, are expected to be de-listed on November 17 when the firm becomes part of Rosen’s Diversified Inc (RDI). Collagen will be incorporated into the life sciences division of RDI, which comprises Scientific Life Solutions, a bio-research and biomedical industry supplier.
After contracting delays and disruptions at Covid-19, Collagen placed itself up for sale in April, contributing to a loss of £ 3.7 million for the year to March 31, which was “significantly higher than expected.” RDI is paying the company 6.5 pence a share, a 160 percent premium to its closing price the day before the “for sale” sign.
‘encouraged’ by current market success, but silent on future revenues, Collagen Solutions
RDI already held an 18.7 percent interest in Collagen before the transaction was decided in August. There was also an established strategic partnership on the board of Collagen with RDI director Wade Rosen.
As of yesterday, RDI had purchased or agreed to buy almost 93 percent of the shares currently issued by Collagen.
The business, which employs about 100 people in the U.K., New Zealand and the U.S., is expected to retain its presence in Glasgow, said a spokesman for Collagen. The company completed a £ 500,000 upgrade earlier this year to improve the capability of the facility.
Collagen Solutions is offering itself for sale.
Jamal Rushdy, Collagen’s managing director, said he was “optimistic” about the future of the company under new ownership.
“We have made tremendous progress in our vision to be the industry’s first choice for regenerative biomaterials,” he said. “We believe that being part of FEI will generate significant growth opportunities and create greater value for the benefit of all stakeholders, especially our employees, customers and suppliers.”