Highly-acquisitive Chippenham-based speciality pharmaceutical company Alliance Pharma has hit the takeover trail again, snapping up eye care products firm MacuVision Europe for £5.5m.
MacuVision sells MacuShield, a once-a-day capsule eye care treatment taken by sufferers of dry age-related macular degeneration and other eye conditions. 
In the year to March 31 Solihull-based MacuVision made earnings of £900,000 on a turnover of £2.7m.
Its sales in calendar year 2014 were £3.4m, around three quarters of them in the UK, with the remainder to international distributors, mainly in Europe. At March 31 it had net assets of £500,000.
Alliance buys underperforming drugs brands and realises their potential through investment. The MacuVision takeover is being funded from existing cash and bank facilities, including a £5.5m drawdown from its £25m Revolving Credit Facility, which it uses to make acquisitions.
Chief executive John Dawson said: “We are delighted to start the year with this important acquisition, which brings both an immediate improvement in earnings and the potential of strong organic growth.”
The deal contains a deferred contingent consideration of up to £6m which will be funded from cash generation and existing bank facilities. Up to £4m will be payable after one year and up to £2m after two years – both are dependent on revenue growth at MacuShield.
Key marketing staff will transfer to Alliance from MacuVision and founders Trevor and Anne McCormack will continue their involvement in the business for 12 months.
MacuShield contains meso-zeaxanthin, lutein and zeaxanthin – three carotenoids, or pigments. These three carotenoids are naturally present in the eye, where together they are known as macular pigment.
Macular pigment helps to protect the eye by neutralising free radicals and absorbing blue light, which can damage the retina. With age, and particularly in dry age-related macular degeneration and other eye conditions, the level of macular pigment is reduced creating the need for a dietary supplement to boost the level of pigment in the retina.
