Provexis Acquires Science in Sport (SiS)
The global sports drink market had an estimated $24.5 billion of sales in 2010. In the same period in the UK, sales of sports drinks were estimated to be £220m, sports foods £30m and sports supplements £70m.
6/17/2011 --- Provexis plc the life-science business that discovers, develops and licenses scientifically-proven functional food, medical food and dietary supplement technologies, is pleased to announce that is has entered into an agreement to purchase the entire issued share capital of SiS (Science in Sport) Limited, a revenue generating, profitable company which manufactures and sells sports nutrition products.
SiS produces sports nutrition products for consumers and professional and elite athletes, including Olympic athletes, professional cyclists and triathletes. Its popular products include: PSP 22 carbohydrate powders, Rego recovery powders and the Go range of gels. The global sports drink market had an estimated $24.5 billion of sales in 2010. In the same period in the UK, sales of sports drinks were estimated to be £220m, sports foods £30m and sports supplements £70m. All three sectors in the UK have shown growth since 2006.
The acquisition of SiS is for total consideration of £8.0 million, of which £7.0 million will be satisfied in cash and a further £1.0 million will be satisfied in new shares in the Company (fully paid). The acquisition is conditional and is expected to be completed on 24 June 2011. SiS is based in the North West of England and employs 51 staff. On completion of the acquisition, Phil Walker, a key consultant to SiS, will become a director of Provexis. The Directors believe that Provexis can use its management and technical capabilities to support growth in the SiS business in the areas of product development, scientific and regulatory expertise and expertise in the sports nutrition sector.
Phil Walker, Managing Director of SiS said: “This represents a great opportunity for the growth of the business. Provexis offers a solid platform for SiS to continue its development, in terms of products and share of the market. I firmly believe that Provexis’ scientific, product development and management experience will add further value to the SiS business. This is an exciting time for the sports nutrition market, particularly in the approach to the Olympics, with an increasing number of athletes and consumers demanding high quality products.”
Stephen Moon, Chief Executive Officer of Provexis, added: “We are delighted to announce that the Company has entered into a conditional agreement to acquire Science in Sport, a highly regarded and growing company in the substantial sector of sports nutrition. I believe there are strong synergies between the two businesses, with the existing scientific, regulatory and product development capability of Provexis available to further enhance the reputation of Science in Sport with elite and professional athletes. The revenue generating, profitable nature of the new business will help us to achieve our strategic goals, by adding a near term revenue stream to our longer-term pipeline development bias. Management of the enlarged business will be highly focused on growing revenues from our Fruitflow heart-health Alliance with DSM Nutritional Products, the new Science in Sport business and continuing to build longer-term shareholder value from our pipeline.”
