BOUCHERVILLE, QC, Nov. 18, 2025 /CNW/ - LSL PHARMA GROUP INC. (TSXV: LSL) (TSXV: LSL.DB) ("the Company" or "LSL Pharma"), an integrated Canadian pharmaceutical company, is pleased to announce that, further to its press release of July 31, 2025, it has completed the acquisition of Laboratoire Du-Var Inc. ("Du-Var"), a contract manufacturer of cosmetics and natural health products established in 1947.
Through this acquisition, LSL Pharma will immediately more than double its production capacity for liquid and semi-solid products, in addition to complementing manufacturing infrastructure to its existing facilities. The integration of Du-Var will also enable the Company to expand its customer base in the CMO segment, while giving it access to new markets in the natural health products, cosmetics, personal care, and pet care.
"This acquisition marks another important milestone in LSL Pharma's growth. It not only allows us to significantly increase our production capacity for liquid and semi-solid products, but also to diversify our offering and attract new customers in segments that complement our core businesses," said François Roberge, President and CEO of LSL Pharma. "Du-Var enjoys a solid reputation and its expertise has been recognized for over 75 years. We are delighted to welcome its team to LSL Pharma," he added.
This transaction is part of LSL Pharma's strategic plan, which aims to build an integrated pharmaceutical, cosmetic, and natural health products manufacturing hub in Canada, combining innovation, quality, and operational flexibility. The effective date of the transaction is November 17, 2025.
Transaction details
The total consideration for the transaction included the renewal of Du-Var's operating line of credit, term loan and certain liabilities totaling a maximum of $3.2 million. For the 12-month period ended on August 31, 2025, Du-Var generated Adjusted EBITDA of $0.5 million, from $4.4 million of revenues. As at August 31, 2025, Du-Var had total assets of $6.9 million, and liabilities of $5.1 million including bank loans totaling $3.0 million. Du-Var adds 30,000 square feet of production capacity and modern manufacturing equipment and is expected to increase the CMO segment's revenues by more than 25%. Over the last several months, LSL Pharma has been working with Du-Var's management to ensure a smooth transition. Once fully integrated, we expect this transaction to be accretive.
About Laboratoire Du-Var Inc.
Founded in 1947, Laboratoire Du-Var Inc. specializes in the development and manufacturing of cosmetics, natural health products and personal care products. The company also manufactures pet care products. Recognized for its expertise and commitment to product quality, Du-Var offers turnkey solutions to a diverse clientele in Canada and abroad. Du-Var is cGMP, Health Canada, FDA, US OTC, Dietary Supplements, NHP, and Animal Natural Health Products certified, and is C-TPAT accredited.
About LSL Pharma Group Inc.
LSL Pharma Group Inc. is a Canadian integrated pharmaceutical company specializing in the development, manufacturing and commercialization of high-quality sterile ophthalmic pharmaceutical products, as well as pharmaceutical, cosmetic and natural health products in solid, semi-solid and liquid dosage forms. . Leveraging its technical expertise, certified facilities, and experienced team, LSL Pharma delivers high-quality solutions that meet the highest industry standards. The companies that are part of the LSL Pharma Group are Steri-Med Pharma Inc., Laboratoire LSL Inc., Virage Santé Inc., Dermolab Pharma Ltd. and Laboratoire Du-Var Inc. For more information, please visit our website at www.groupelslpharma.com.
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This press release may contain forward-looking statements as defined under applicable Canadian securities legislation. Forward looking statements include estimates and statements that describe the Corporation's future plans, objectives or goals, including words to the effect that the Corporation or management expects a stated condition, belief, estimate or opinion, or result to occur. Forward-looking statements may be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "believe", "aim", "plan" "continue" or similar expressions. Forward-looking statements are based on a number of assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Corporation's ability to control or predict, that could cause actual results or performance to differ materially from those expressed or implied in such forward-looking statements. These risks and uncertainties include, but are not limited to, those identified in the Corporation's filings with Canadian securities regulatory authorities, such as legislative or regulatory developments, increased competition, technological change and general economic conditions. All forward-looking statements made herein should be read in conjunction with such documents.
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SOURCE Groupe LSL PHARMA INC.
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FRANÇOIS ROBERGE, President and Chief Executive Officer, (514) 664-7700, Email: Investors@groupelslpharma.com Or LUC MAINVILLE, Executive Vice President and Chief Financial Officer, (514) 664-7700, ext. 301, Email: lmainville@groupelslpharma.com