IN BRIEF: Wellnex Life soars on up to AUD21 million Pain Away sale
Wellnex Life Ltd - Melbourne-based consumer healthcare products company - Enters formal binding agreement to sell 'Pain Away' business and assets to Mentholatum Australasia Pty Ltd, for up to AUD21.3 million in cash. Mentholatum's parent firm is Japanese FMCG and pharmaceutical company Rohto Pharmaceutical Co Ltd. Consideration consists of AUD19.8 million payable upon completion, followed by an up to AUD1.5 million earn-out subject to threshold and target normalised earnings before interest, tax, depreciation and amortisation performance of the business in the year following completion. Wellnex intends to use the proceeds to retire all of its borrowings totalling around AUD10.2 million, with leftover funds going towards working capital and potentially other growth initiatives, as well as a potential capital return to shareholders. Wellnex will convene a general meeting seeking shareholder approval on September 8, aiming to complete the sale "shortly" afterwards. Expects the proceeds to leave it debt-free upon completion. Read More