08:18 AM EDT, 05/06/2024 (MT Newswires) -- LSL Pharma Group ( LPGIF ) on Monday said it will acquire a rival pharmaceutical manufacturer for $2.5 million in cash to expand its contract-manufacturing of natural health products.

LSL identified the company only as a "Quebec-based competing contract drug manufacturer (CDMO) specialized in the formulation, production, and marketing of natural products". LSL said it expects the acquisition will increase its annual revenue by as much as 20%.

"This accretive transaction constitutes the first step in executing our growth strategy by expanding our CDMO operations, manufacturing capabilities and customer base," LSL chief executive Francois Roberge said in a release. The acquisition target "is a profitable company with well-established brand names and an excellent reputation as a contract manufacturer. Its product offering, combined with that of our LSL Laboratory subsidiary, will allow us to significantly expand our presence in the fast-growing natural health products sector."

LSL shares closed unchanged at $0.42 Friday on the TSX Venture Exchange.