12:57 PM EDT, 07/31/2025 (MT Newswires) -- LSL Pharma Group (LSL.V) on Thursday said it reached a non-binding agreement to acquire an unnamed closely held Quebec-based competitor.

The company said the target company is a "competing contract manufacturer specialized in the formulation and production of liquid and semi-solid natural and cosmetic products".

The acquisition is expected to cost between $3 million and $3.3 million, and includes a nominal cash consideration and the assumption of the unnamed company's debt. The deal, which is expected to be finalized by the September, is estimated to grow LSL's revenue by $8 million to $10 million.

"Following the highly successful acquisition of Virage Sante and Dermolab Pharma last year, we look forward to executing this additional transaction to further expand our CDMO operations, manufacturing capabilities and customer base as more and more Canadian companies are looking for local solutions to their supply chain requirements." chief executive Francois Roberge said.

LSL Pharma shares were last seen unchanged at $0.42 on the TSX Venture Exchange.