TPI Enterprises (ASX:TPE)
has signed an agreement to buy the opiates and tableting division of a European opiate pharmaceuticals company.
The Australian poppy processing company inked the deal to buy the division of Vistin Pharma ASA in Norway for $25.4 million.
The acquisition is expected to be EPS accretive on a pro-forma NPAT basis in FY18 of 10 cents per share.
The purchase has an implied EBITDA multiple of 5.6 times for FY17.
The company says it’s a major step toward delivering its Narcotic raw material volume growth.
Shares in TPI Enterprises (ASX:TPE)
are trading 10 per cent higher to $2.42.