UK-based specialty pharma firm Sinclair IS Pharma has agreed to sell its non-aesthetics business to Alliance Pharma for £132m.

According to Sinclair IS Pharma, the sale of this business creates an aesthetics firm, with high gross margins recorded in the full year 2015.

Currently, the company has pro-forma net cash of £82m, which will be used to invest in future growth opportunities and cover milestone payments from acquisitions.

Under the deal, Alliance Pharma will acquire 27 products, which will increase the scale of its business.

"The disposal substantially reduces business complexity and transforms Sinclair’s balance sheet."

The transaction also includes wound care products such as Kelo-cote, Flammazine, Flammacerium and Aloclair; skin care products Kelo-Stretch, Atopiclair, Fazol, Papulex and Oxyplastine, as well as hospital products Haemopressin and Optiflo.

The non-aesthetics business being sold generated revenues of £43.3m, gross profit of £22.3m and EBITDA of £9m for the fiscal year ending 30 June 2015.

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Sinclair IS Pharma CEO Chris Spooner said: "The disposal of our non-aesthetics business for an upfront cash consideration of £132m creates a fast growing and high gross margin pure-play aesthetics company with a leading and differentiated position in collagen stimulation.

"In-market sales data shows that the growth rate of our Aesthetics portfolio has accelerated throughout 2015 and is now trending at c.40%.

"The disposal substantially reduces business complexity and transforms Sinclair’s balance sheet. The company remains in an offer period as a result of continued interest in Sinclair’s leading aesthetics brands."

Alliance noted the transaction will strengthen its presence outside the UK and provide an improved platform for further corporate development.

Alliance Pharma chief executive John Dawson said: "This acquisition represents a very significant development for Alliance. On completion, Alliance will be a significantly larger business with synergies in existing markets.

"Having over half of our business outside of the UK, we will have a greater ability to compete for international deals and in-licensing opportunities."

Subject to approval by Alliance Pharma shareholders, the transaction is expected to close in December.

Following completion of the transaction, 39 current Sinclair employees are expected to be transferred to Alliance Pharma.