Another significant step in $TLX's integrated strategy, this time acquiring the US network of RLS Group Ltd network of 31 licensed radiopharmacies covering 85% of the US population,

ASX Announcement

Deal comprises "upfront cash consideration of US$230 million before adjustments for cash and cash equivalents (net of restricted cash); debt and debt equivalents; transaction expenses; and working capital, and deferred cash consideration up to a maximum of US$20 million, contingent on achievement of certain milestones related to demonstration of accretive financial and operational performance during the four-quarters following closing. The acquisition and related transaction costs are expected to be funded from existing cash reserves."

RLS already distirbutes Illuccix and will continue to operate as an independent business unit, servong both $TLX and "select strategic commercial partners".

RLS is a significant business in its own right, earning 2023 revenues of $US158m in the rapidly emerging and increasingly material area of radiopharmaceuticals.

I have no way of fundamentally valuing this deal, however, it is consistent with $TLX strategy of ensuring it controls its own supply chain. Increasingly, however, i'ts looking like $TLX will be an important player in the supply chains of others, and it will be interesting to see if this attracts any regualtory interest. Perhaps not yet, but something to keep an eye on.

Disc: Held in RL and SM