Biote Announces Definitive Agreement To Acquire F.H. Investments, Inc., d/b/a Asteria Health, A Privately Held 503B Manufacturer Of Compounded Bioidentical Hormones For $8.5M
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Biote Corp. (NASDAQ:BTMD) has entered into a definitive agreement to acquire F.H. Investments, Inc., doing business as Asteria Health, for $8.5 million, with an additional $500,000 contingent on production metrics. Asteria Health is a 503B manufacturer of compounded bioidentical hormones and a current supplier to Biote-certified practitioners. The acquisition aims to enable vertical integration, improve Biote's margin profile, and expand product offerings. The deal is expected to close in Q1 2024 and is funded by Biote's cash reserves. Truist Securities is the financial advisor for the transaction.
January 17, 2024 | 9:09 pm
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Biote Corp. is acquiring Asteria Health to vertically integrate hormone product manufacturing, which is expected to improve margin profiles and expand product offerings.
The acquisition of Asteria Health by Biote is a strategic move to control the supply chain and improve margins, which is generally viewed positively by investors. The minimal near-term revenue impact suggests stability, while the potential for expanded product offerings could drive future growth. The confidence in the analysis is high due to the clear strategic benefits outlined by the company, though the full impact on financials will become clearer post-acquisition.
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