Pros and cons of Horizon’s game-changing acquisition

Pros and cons of Horizon’s game-changing acquisition

There are two ways to look at Horizon Discovery’s (HZD) 2017 acquisition of cell-line specialist Dharmacon. Optimists – including broker Numis – will praise the timing of the purchase: after several years of poor growth, Dharmacon reported a 6 per cent increase in revenues in the first six months of 2018 as demand ramped up, while growth is expected to accelerate again in the second half when competition is weaker. But sceptics will say the acquisition looks desperate. Without the new division’s £14m revenue contribution, Horizon Discovery reported an 8 per cent decline in sales to £11.1m.

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