Karo Pharma acquires Trimb AB
The acquisition will be financed through new credit facilities and a bridge loan facility provided by SEB and Swedbank. The intention is to repay the bridge loan facility with proceeds from a new share issue with pre-emptive rights for Karo Pharma's shareholders of approximately MSEK 1,500 ("Rights Issue"). The Board of Directors of Karo Pharma intends to propose that the company's shareholders to resolve on the Rights Issue. Karo Pharma AB said the combined companies had annual sales of about MSEK 2,640 (€2.48bn) in 2018.
Karo Bio AB, is a biopharmaceutical company engaged in the research and development of drugs based on the nuclear receptors Estrogen Receptor Beta (ERbeta) cancer, a platform, which focuses on the development of ERbeta in cancer treatment; ERbeta multiple sclerosis (MS), which specializes in the autoimmune disease MS treatment; and Related Orphan Receptor Gamma (RORgamma), which is responsible for the nuclear receptors application in treatment of autoimmune disease, such as rheumatoid arthritis and psoriasis. The Company collaborates with Pfizer, 4D Science, and Merck, among others.
Founded in 2012, Stockholm-based Trimb Holding is a leading consumer healthcare company with approximately 90 employees. Trimb owns licenses to, markets and sells a large number of over-the-counter pharmaceuticals and consumer healthcare products. Trimb has a portfolio of leading brands focused on skin care, foot care, oral care and intimate health categories. Over the last five years, Trimb has completed several strategic acquisitions and executed a number of organic growth initiatives.
Taking these acquisitions and initiatives into account, and adding back certain one-off costs, Karo Pharma estimates that Trimb generated adjusted sales and adjusted EBITDA of approximately MSEK 930 and MSEK 150, respectively, for 2018. Approximately 65% of Trimb's adjusted sales in 2018 were derived from the Nordic market and the company has a growing presence in Europe.
"Trimb complements Karo Pharma well, both in terms of geographical presence, distribution channels and product offering", said Christoffer Lorenzen, who is taking over as Karo Pharma's new CEO as per 1 July 2019.
The intention is to, post-closing of the Transaction, repay the bridge loan facility with proceeds from a new share issue with pre-emptive rights for Karo Pharma's shareholders of approximately MSEK 1,500 (the "Rights Issue"). The Board of Directors of Karo Pharma intends to propose that the Company's shareholders, during an extraordinary general meeting, authorises the Board of Directors to resolve on the Rights Issue.