LSL Pharma Group Inc., a Canadian integrated pharmaceutical company, has entered into a binding Letter of Intent to acquire Target Co., a privately held, Quebec-based competing contract drug manufacturer (CDMO) specialized in the formulation, production, and marketing of natural products.
 
The $2.5 million purchase price, to be paid in cash only, includes a fully operational manufacturing plant. LSL Pharma anticipates closing the transaction by the end of Q2-2024.
 
Target Co. is based in the province of Quebec and will be integrated into LSL Laboratory CDMO activities. Target Co. manufactures a range of natural products in liquid, powder, as well as in capsule forms which are sold under its own brands or as under private labels.
 
“This accretive transaction constitutes the first step in executing our growth strategy by expanding our CDMO operations, manufacturing capabilities and customer base,” said François Roberge, President and Chief Executive Officer of LSL Pharma.
 
“Target Co. is a profitable company with well-established brand names and an excellent reputation as a contract manufacturer. Its product offering, combined with that of our LSL Laboratory subsidiary, will allow us to significantly expand our presence in the fast-growing natural health products sector. We expect this transaction to generate important synergies with our existing operations as well as leveraging our head office infrastructure,” Roberge added.

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