LSL Pharma Acquires Target Co to Expand Natural Health CDMO Operations

• LSL Pharma Group Inc. is set to acquire Quebec-based CDMO, Target Co., for $2.5 million in cash.

• The acquisition includes a fully operational manufacturing plant and is expected to close by the end of Q2 2024.

LSL Pharma Group Inc., a Canadian integrated pharmaceutical company, has announced its intent to acquire Target Co., a privately held contract drug manufacturer (CDOM) based in Quebec. The deal, valued at $2.5 million, is to be paid in cash and includes a fully operational manufacturing plant. The transaction is expected to close by the end of the second quarter of 2024.

Target Co., known for its specialisation in the formulation, production, and marketing of natural products, will be integrated into LSL Laboratory’s CDMO activities. The company manufactures a range of natural products in liquid, powder, and capsule forms, which are sold under its own brands or as private labels.

François Roberge, President and Chief Executive Officer of LSL Pharma, commented on the acquisition, stating, “This accretive transaction constitutes the first step in executing our growth strategy by expanding our CDMO operations, manufacturing capabilities and customer base.”

Roberge further added, “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.”