LONDON (ShareCast) - (Sharecast News) - British sports nutrition company Science in Sport intends to raise £29m via a placing of new shares in order to double in size via the proposed acquisition of PhD Nutrition.
Science in Sport has agreed to acquire PhD for a total of £32m - £28.5m in cash, with the remaining £3.5m covered by way of the issue of 5.83m new ordinary shares to PhD.

In order to fund the cash consideration, SIS will issue 48.39m new ordinary shares at a placing price of 60p each - a 14.3% discount to the group's closing price on 13 November.

PhD, a UK-based protein brand with increasing revenue growth through its Amazon sales channel and distribution into 45 countries across Europe, the Middle East, China and Australia, generated revenues of £20.8m and an adjusted EBITDA of £2.8m in its last trading year.

Chief executive Stephen Moon, said: "The acquisition of PhD is highly complementary, doubles the size of our business and accelerates our ambition to become a global leader in premium performance nutrition."

"Operating in a rapidly developing market, we see this transaction as an important step towards winning on the global stage. With the clear synergies and growth prospects of the combined group we anticipate delivering strong returns."

As of 0840 GMT, SIS shares had tumbled 11.43% to 62p, just above the placing price.

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