British protein products manufacturer PhD Nutrition Ltd has agreed to be purchased by innovative sports nutrition products manufacturer Science in Sport PLC for 32 million pounds ($41.6 million) in cash and shares on a cash-free, debt free basis.
Science in Sport intends to pay $37 million in cash and $4.5 million through the issue of 5.8 million shares at a price of $0.78 per share.
The acquisition is expected to have a positive impact on revenue, with PhD set to deliver mid-teen percentage growth in the first full year following deal completion.
The acquisition will also complement Science in Sport's plans to expand into international markets, as PhD already has a position in the Middle East and China. For the year to the end of August, PhD Nutrition reported a revenue of $23.8 million.