Science in Sport administrators have thrown their weight behind a takeover bid for the UK sports-nutrition group from private-equity agency B-D Capital.
In a inventory trade submitting immediately (17 April), Science in Sport stated its unbiased administrators had agreed the phrases of a deal.
The event got here 24 hours after B-D Capital’s curiosity within the enterprise emerged.
B-D Capital’s takeover supply quantities to £0.34 a share for Science in Sport, valuing the proprietor of the SiS and PhD Vitamin manufacturers at £82.3m ($109.1m).
Within the first half of 2024, Science in Sport ran up a lack of £2.5m. The loss was decrease than the £3.3m booked a yr earlier however got here amid a 25.4% drop in first-half revenues to £25.7m.
In July final yr, the corporate carried out a capital increase price round £8.5m.
A buying and selling replace in January included a set of partial unaudited outcomes during which Science in Sport stated it anticipated its annual revenues to have fallen by 17.5% to £51.9m in 2024.
“SiS has constructed a implausible portfolio of sports activities vitamin merchandise and the present administration staff has been instrumental in reshaping its strategic focus. Nonetheless, while progress has been substantive, a lot stays to be completed to optimise the worth potential of the SiS group,” Science in Sport non-executive director Henry Turcan stated.
“The SiS board believes that the present supply displays the premium nature of the SiS manufacturers and market place which has been established and rewards shareholders for the religion and capital offered, most lately on the turnaround fundraising undertaken in July final yr at a value of 17 pence per share.”
He added: “The acquisition will present SiS shareholders with the chance to grasp the worth of their holdings, in money, at a horny worth with out offering additional capital or assuming extra danger prone to be essential to drive significant development and worth creation over the medium time period.”
London-headquartered Science in Sport, arrange in 1992, markets gels, powders and bars by way of grocery store chains, specialist sports activities retailers and on-line. The corporate, which additionally has tie-ups with skilled sports activities groups, has a manufacturing facility in northern England.
In 2023, BD-Capital made an funding in Netherlands-based meals dietary supplements firm Bonusan. It additionally has gut-health meals complement supplier Symprove in its portfolio.
BD-Capital companion Andrew Dawson stated the private-equity agency had been “impressed by the enticing fundamentals and excessive development potential of SiS’ two manufacturers”.
He added: “We have now been monitoring the enterprise for a number of years and have been extremely impressed by the outcomes achieved by the present administration staff within the final 18 months. As an operator-led, sector-specialist investor, BD-Capital has robust expertise in supporting main shopper well being and VMS companies and we are going to carry to bear our full vary of capabilities to help SiS’ development.”
The Science in Sport unbiased administrators who’re buyers within the enterprise have stated they’ll promote their shares to B-D Capital.
Total, the private-equity agency has acquired “irrevocable undertakings” from Science in Sport shareholders who collectively personal simply over 40% of the enterprise that they’ll vote in favour of the bid at an upcoming shareholder assembly.