LSL PHARMA GROUP COMPLETES THE ACQUISITION OF LABORATOIRE DU-VAR INC.

Executive Summary

• LSL Pharma Group Inc. completed the acquisition of Laboratoire Du‑Var Inc., effective November 17, 2025.
• The deal adds ~30,000 sq ft of production capacity and is expected to increase CMO segment revenue by >25%, making the transaction accretive.
• Total consideration consists of renewal of Du‑Var’s operating line of credit, term loan and assumption of liabilities up to $3.2 million; Du‑Var reported FY2025 Adjusted EBITDA of $0.5 M on revenues of $4.4 M.

Key Details

• Acquisition Target: Laboratoire Du‑Var Inc., a contract manufacturer of cosmetics, natural health products, personal care and pet care (established 1947).
• Effective Date: November 17, 2025.
• Consideration: Renewal of operating line of credit, term loan and assumption of certain liabilities – maximum aggregate $3.2 million.
• Du‑Var Financials (12 months ended Aug 31, 2025):
• Adjusted EBITDA: $0.5 M
• Revenue: $4.4 M
• Total assets: $6.9 M
• Total liabilities: $5.1 M (including bank loans of $3.0 M).
• Operational Impact:
• Adds 30,000 sq ft of modern production capacity and equipment.
• More than doubles LSL Pharma’s liquid and semi‑solid product capacity.
• Expected to lift CMO segment revenues by >25% once fully integrated.
• Strategic Rationale: Enhances LSL Pharma’s integrated manufacturing hub, diversifies offering into cosmetics, natural health, personal care, and pet care markets, and expands customer base in the CMO space.
• Management Comments: François Roberge (President & CEO) highlighted the acquisition as a “milestone” that increases capacity, diversifies offerings, and is expected to be accretive.

Notable Quotes

“This acquisition marks another important milestone in LSL Pharma's growth… it not only allows us to significantly increase our production capacity for liquid and semi‑solid products, but also to diversify our offering and attract new customers in segments that complement our core businesses.” – François Roberge, President & CEO

All forward‑looking statements are subject to risks and uncertainties detailed in the release.