Horizon Discovery to buy General Electric subsidiary for $85 million
Dharmacon is an indirect wholly-owned subsidiary of General Electric and develops gene editing products.
Horizon said Dharmacon reported revenue of $36.7 million in the year ended December 31, with earnings before interest, tax, depreciation and amortisation of $5.4 million.
Horizon said General Electric will receive $50 million in cash, and an unnamed subsidiary of General Electric will be issued with $35 million in new shares in Horizon, to be valued at 205 pence each.
This will equate to 13 million new shares, representing 8.8% of the enlarged share capital of Horizon.
Horizon said it intends raise GBP76.4 million, net of expenses, through the issue of 39.0 million new shares at a placing price of 205p each. In addition to satisfying the cash consideration for the acquisition, Horizon said the proceeds from the placing will also provide additional working capital for the enlarged group.
The group said the acquisition is conditional on approval of the placing by Horizon shareholders and anti-trust clearance of the acquisition in the U.S. ■