By Kristy Dorsey

Scottish biomaterials specialist Collagen Solutions is headed into private ownership as a £30.4 million cash offer to take over the business has now gone wholly unconditional.

Shares in AIM-listed Collagen Solutions, which employs about 50 people at its main UK base in Glasgow, are scheduled to cease trading on November 17 when the firm becomes part of US agribusiness Rosen’s Diversified Inc (RDI). Collagen will join RDI’s life sciences division, which includes Scientific Life Solutions, a supplier to the bioresearch and biomedical fields.

Collagen put itself up for sale in April after contract delays and Covid-19 disruption led to a “materially greater than anticipated” loss of £3.7m for the year to March 31. RDI is paying 6.5p per share for the business, a 160 per cent premium to its closing price the day before it hoisted the “for sale” sign.

READ MORE: Collagen Solutions ‘encouraged’ by current trading but mum on potential sale

Prior to agreeing the acquisition in August, RDI already owned an 18.7% stake in the Collagen. There was also an existing strategic relationship with RDI director Wade Rosen on the Collagen board of directors.

As of yesterday, RDI had acquired, or agreed to acquire, nearly 93% of Collagen shares currently in issue.

A spokesperson for Collagen said the business, which employs about 100 people in the UK, New Zealand and the US, is expected to maintain its presence in Glasgow. Earlier this year, the company completed at £500,000 upgrade to increase capacity at the site.

READ MORE: Collagen Solutions puts itself up for sale

Jamal Rushdy, chief executive of Collagen, said he is “optimistic” about the firm’s potential under new ownership.

“We have made tremendous progress in our vision to be the industry’s first choice for regenerative biomaterials,” he said. “We believe that being part of RDI will generate significant growth opportunities and create enhanced value for the benefit of all stakeholders and in particular our employees, customers and suppliers.”