Life sciences business Provexis (LON:PXS) has agreed an £8.0 million deal to buy SiS (Science in Sport) Ltd, a company that makes and sells sports nutrition products. While Provexis did not reveal details, it is understood that SIS is revenue generating and profitable. AIM listed Provexis specialises in developing and licensing scientifically-proven functional food, medical food and dietary supplement technologies. It said that its management and technical capabilities would be able to support growth in the SiS business in the areas of product development, scientific and regulatory expertise and expertise in the sports nutrition sector.

SiS is based in the north-west of England and employs 51 staff. It produces sports nutrition products for consumers and professional and elite athletes, including Olympic athletes, professional cyclists and triathletes. Its popular products include: PSP 22 carbohydrate powders, Rego recovery powders and the Go range of gels. The global sports drink market had an estimated $24.5 billion of sales in 2010. In the same period in the UK, sales of sports drinks were estimated to be £220m, sports foods £30m and sports supplements £70m. All three sectors in the UK have shown growth since 2006.

Under the terms of the deal Provexis is paying £7.0 million in cash and a further £1.0 million in new shares for SiS. In an interview with Stockopedia in May, Stephen Moon, the chief executive of Provexis, said the company was keen to get an acquisition completed in order to build its product pipeline. Provexis’ existing pipeline is largely concentrated on its Fruitflow technology. The company has partnered with Dutch health ingredients supplier DSM Nutritional Products in an effort to drive sales of the product.

Commenting today, Stephen Moon said: “We are delighted to announce that the company has entered into a conditional agreement to acquire Science in Sport, a highly regarded and growing company in the substantial sector of sports nutrition. I believe there are strong synergies between the two businesses, with the existing scientific, regulatory and product development capability of Provexis available to further enhance the reputation of Science in Sport with elite and professional athletes. The revenue generating, profitable nature of the new business will help us to achieve our strategic goals, by adding a near term revenue stream to our longer-term pipeline development bias. Management of the enlarged business will be highly focused on growing…

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