DBAY Advisors to acquire Alliance Pharma in U$467.5M deal

UK—Alliance Pharma, a healthcare company based in the UK, has accepted a final cash offer from its largest shareholder, DBAY Advisors, which values the company at approximately £362 million (U$467.5 million).

This decision follows a series of negotiations and reflects DBAY’s commitment to acquiring the remaining shares of Alliance Pharma.

The offer, presented through Aegres Bidco Limited—a newly established entity—proposes a payment of 64.75 pence per share.

This marks a 3.6% increase from DBAY’s initial proposal of 62.5 pence per share in January 2025 and represents a 46% premium over Alliance’s share price as of January 9, 2025, the day before the offer period commenced.

Alliance Pharma specializes in marketing and distributing consumer healthcare products and prescription medicines.

Its product range includes notable brands such as Kelo-Cote, a scar treatment, and Anbesol, an oral pain relief product containing benzocaine.

DBAY’s interest in Alliance became evident last year after the company faced several challenges, including delays in publishing its annual results and the resignation of CEO Peter Butterfield.

Over the past two years, DBAY has steadily increased its stake in Alliance, holding 27.9% of its shares.

In its initial takeover proposal, DBAY expressed confidence in Alliance’s future prospects but emphasized the need for significant operational changes and increased investment to maximize growth potential.

The firm argued that such changes would be more effectively implemented away from the public market pressures.

In January 2025, Alliance’s board initially recommended that shareholders accept the 62.5 pence per share offer.

However, after receiving feedback from shareholders, a scheduled general meeting was adjourned to allow for further discussions. This led to the revised offer of 64.75 pence per share.

According to a filing on the London Stock Exchange dated March 10, DBAY plans to fund the acquisition through a combination of equity investments from its affiliated funds and external financing.

Additionally, certain lenders will be offered a small portion of shares in Midco, Bidco’s parent company.

Shareholders are scheduled to vote on the proposal at a rescheduled meeting on March 13, 2025.

If approved, the deal is expected to be completed in the first half of 2025, resulting in Alliance Pharma becoming a privately owned company under DBAY’s control.

Financially, Alliance reported an underlying revenue of £84 million (US$108.66 million) for the six months ending June 30, 2024, up from £81.4 million (US$105.30 million) during the same period the previous year.

 Profit before tax also increased, reaching £12.7 million (US$16.43 million) compared to £10.3 million (US$13.32 million) in 2023. 

Analysts anticipate that shareholders will accept the revised offer, especially given the board’s endorsement and the favorable market conditions.

The transition to private ownership is expected to provide Alliance with the flexibility needed to implement necessary operational and strategic initiatives without the constraints of the public market.

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