Alliance Pharma set to be taken over by biggest investor in £349.7m deal

The deal will see investors receive 62.5p per share, which represents a 41% premium on the closing share price of Alliance Pharma on Thursday

DBAY Advisors, the largest shareholder of Alliance Pharma, has agreed to a takeover the drug company in a deal worth £349.7m.

The agreement will see shareholders receive 62.5p per share, marking a 41% increase on Alliance Pharma’s closing share price of 44.35p on Thursday. DBAY Advisors, an Isle of Man-based investment firm, currently owns a 27.9% stake in the pharmaceutical company. Alliance Pharma, which trades over-the-counter drugs in more than 100 countries, is listed on London’s Aim index.

The company had a turbulent year in 2024, with former chief executive Peter Butterfield stepping down amid controversy and multiple delays to its annual results. In recent years, the company has increased its debt through numerous small acquisitions, and in February 2022, it was fined £7.9m by competition regulators for alleged anti-competitive behaviour, a decision that was later overturned.

The company suspended its dividend in September 2023, and the Competition and Markets Authority attempted to disqualify Mr Butterfield as a director. Nick Sedgwick, who previously served as the UK and Ireland regional director of consumer health at Reckitt Benckiser, eventually replaced Mr Butterfield.

On Friday, DBAY Advisors expressed support for Alliance Pharma’s leadership team but emphasised the need to "accelerate investment". DBAY stated: "It has become apparent to DBAY that Alliance needs time away from the public market to allow it to fully deliver these initiatives in a reasonable timeframe."