LSL Pharma Group Inc. announces the acquisition of Dermolab Pharma Ltd.
by CM Staff
This acquisition increases LSL Pharma's contract development and manufacturing activities, while creating synergies with its other subsidiaries, LSL Laboratory Inc., Steri-Med Pharma Inc. and Virage Santé Inc.
BOUCHERVILLE — LSL PHARMA GROUP INC., a Canadian integrated pharmaceutical Corporation, announces the acquisition of Dermolab Pharma Ltd., a contract manufacturing company specializing in the manufacturing of liquid, and semi-solid products, based in Ste-Julie, Quebec. This acquisition increases LSL Pharma’s contract development and manufacturing activities, while creating synergies with its other subsidiaries, LSL Laboratory Inc., Steri-Med Pharma Inc. and Virage Santé Inc. LSL Pharma also announced the closing of a $2 million concurrent debt financing. The closing of the transaction occurred after markets had closed on December 17, 2024.
The total consideration for the transaction includes (i) the renewal of Dermolab’s operating line of credit and term loan totaling a maximum of $3 million and (ii) a cash payment of $955,000 on closing. The cash portion of the purchase price was financed by the proceeds of the concurrent debt financing and will be subject to post-closing adjustments.
LSL Pharma says that the acquisition is expected to boost their revenues by approximately 40% for the upcoming fiscal year. The acquisition is also expected to broaden Dermolab’s customer base. Robert Boisvert, Dermolab’s prior President has been retained for an interim period to ensure a smooth transition.
“We are excited about the opportunity to add Dermolab to our contract manufacturing division. This acquisition fits with LSL Pharma’s growth strategy of diversifying its service offering and increasing its manufacturing capabilities to better serve the pharmaceutical sector, as well as to expand our activities to the cosmetic market,” said François Roberge, President and CEO.
“By leveraging the management talent and expertise of its seasoned staff, we expect Dermolab to operate as a standalone entity as part of our group. We look forward at the opportunity to continue building Dermolab into a dominant player in the development and manufacturing of high-quality creams and liquids for the Canadian, US and European pharmaceutical and cosmetic markets. Finally, we are especially thankful for the support of the departing President, Robert Boisvert, who has been at the helm of the Corporation for the last 20 years,” concluded Mr. Roberge.
