Venture Life Group (AIM:VLG) climbed over 15% on Wednesday, rising to 65.3p, driven by acquisition news, as it agreed to buy the FemiClear and CUROXEN brands from OrganiCare for up to $28m.
The consideration comprises $23m payable in cash on completion, up to $4m deferred cash contingent on expected trading for the 12 months to 31 December. A future contingent payment of $1m will be due if the acquired brands significantly outperform.
Venture Life, a consumer self-care company focused on proactive healthy longevity, noted that the price equates to c.1.9x expected 2026 net revenue and 6.1x contribution.
"The brands are highly complementary to VLG's current women's intimate health portfolio, are margin enhancing to the group, and hold a strong and rapidly growing market position in the US," said CEO Jerry Randall.
The acquired brands recorded $12.1m net revenue, $7.5m gross profit and $3.6m contribution in the 12 months to 31 March. The deal will bring five employees and one contractor across to VLG.
OrganiCare will provide manufacturing under an initial 18-month agreement to support transfer.
The acquisition carries a working capital impact of c.13% of LTM net revenues, and VLG expects synergies to materialise progressively from calendar year 2027 with confirmed new retail listings landing through Q2 to Q4 2026.
