Member Article

DWF and Turner Parkinson advise on Healthcare Investment Opportunity acquisition

Top 20 North West law firm, DWF, has played a key role in the acquisition by Healthcare Investment Opportunities plc (HIO) of collagen manufacturer Collbio Limited.

The enlarged group has been readmitted to AIM following the deal.

Manchester-based business law firm Turner Parkinson advised the shareholders of Collbio Ltd on the acquisition and readmission to AIM. Collbio Ltd makes medical grade collagen components for use in regenerative medicine, medical care and in-vitro diagnostics.

Zeus Capital is lead adviser, nominated adviser and broker to HIO.

Corporate finance adviser, Diagnostic Capital, originated the transaction and provided lead advisory services to the shareholders of Collbio.

The acquisition of Collbio is a reverse takeover and the maximum consideration payable is £7.07 million, comprising £1.4 million in cash and £2.91 million in shares.

A further £2.76 million will be payable (in cash and shares) depending on the achievement of certain performance criteria.

As part of the deal, Collbio has agreed to acquire the assets and business of Collagen Solutions, the California-based provider of medical grade bovine collagen, corium and tendon, and Healthcare Investment Opportunities plc has also changed its name Collagen Solutions plc.

Alex Clarkson, chief executive of Diagnostic Capital, said: “The regenerative medicine market is growing rapidly and we were pleased to be able to support Stewart White and his plans to reunite with old colleagues based in California to create a uniquely positioned business able to supply R&D and biomaterial into this growing market.”

Stephen Houston, national head of corporate at DWF, who led the deal for HIO, said: “Having worked with Healthcare Investment Opportunities on its admission to AIM in April 2013, we were well placed to advise on this acquisition and readmission.

“The deal unites the research development capabilities of Collagen Solutions with the manufacturing asset base and expertise of Collbio and the enlarged group is now better equipped to respond to the changing and challenging requirements of healthcare systems and patient demographics.”

Ross Andrews, head of capital markets at Zeus Capital said: “We were delighted to advise HIO on its first acquisition having raised £4 million for the Company in April 2013 to invest on healthcare focused opportunities.

“We believe that the opportunity exists for management to build a significant international business by assisting customers in expediting the transition of their products from development to manufacture through the provision of cost effective, functional collagen materials and devices across a range of clinical indications, for the ultimate benefit of providing effective and affordable treatment to patients.”

James Sheridan led a Turner Parkinson team who advised on the acquisition of Collagen Solutions by Collbio, and the sale of Collbio to HIO.

Mr Sheridan said: “Having advised Collbio earlier this year on the acquisition of the business, it is great to see Stewart White and his team grow the operation so quickly and to be able to pull together the Collagen Solutions deal as well.”

Director Lisa Stavropoulos, solicitor Lucy Shenton and solicitor Nick Hawthorne worked on the deal at DWF. Corporate partner Stephen Hadlow, solicitor Robin Hastings and solicitor Simon Weinberg made up the Turner Parkinson team.

This was posted in Bdaily's Members' News section by Simon Malia .