Rosen’s Diversified today agreed to a deal to acquire the entire issued and to-be-issued ordinary share capital of Collagen Solutions (LON:COS).
Rosen’s Diversified (RDI) is a Fairmont, Minn.-based food production, agrichemical and distribution company that is already Collagen Solutions’ largest shareholder, according to a news release. Collagen Solutions, which has a U.K. headquarters and operates out of Eden Prairie, Minn., develops medical grade collagen, tissues and related devices and components for use in regenerative medicine, tissue engineering and research.
Under the agreement, Collagen shareholders are entitled to receive approximately 9¢ (6.5 pence) in cash for each share held, valuing the entire existing issued and to-be-issued ordinary share capital at approximately $40.2 million (£30.41 million) on a fully diluted basis.
As of the date of the announcement, RDI beneficially owns 83.6 million shares of Collagen, representing approximately 18.7% of the company’s existing issued ordinary share capital. RDI also has an existing strategic relationship with the company.
“Collagen has built a high-performance team and significant portfolio of customers and projects, well positioning the company in the exciting regenerative biomaterials and tissue market,” Collagen non-executive chairman Chris Brinsmead said in the release. “The offer from RDI recognizes this strategic value and provides an attractive opportunity for shareholders to realize immediate value at a significant revenue multiple and premium to both the historical and prevailing share price.”
“RDI’s acquisition of Collagen, when integrated with [RDI subsidiary Scientific Life Solutions], will create a business of significant scale in the tissue supply and engineering space,” RDI director Wade Rosen added. “With highly complementary offerings and capabilities, the combination will reinforce SLS’s already robust position in the North American market, while Collagen’s international presence will also provide a strong platform for the enlarged group to extend its supply of porcine and bovine tissue into the EMEA and APAC regions.
“Taken together, we expect this to accelerate future growth and value creation while enhancing opportunities for employees of both entities.”
