4th Jun 2014 09:22
LONDON (Alliance News) - PuriCore PLC said Wednesday that it had agreed to sell its UK Endoscopy business to Medivators B.V for USD26.9 million in cash.
Medivators is a European subsidiary of Cantel Medical Corp, and provides infection prevention and control products and services.
The Endoscopy business generated a pretax profit of USD2.1 million from revenue of USD23.3 million in 2013.
Puricore said it was considering the best use of the proceeds from the sale, including potential investment in its businesses, strategic acquisitions, and a potential cash return to shareholders. Puricore said that its best prospects for sustainable growth were in the expansion of its Supermarket Retail and Health Sciences business.
The company said that whilst the Endoscopy business has successfully supplied products and services to UK hospitals, a majority of them do not rely on its core intellectual property.
The sale is subject to at least 50% shareholder approval. However, the company has received a non-binding letter of intent to support the sale in respect of 57.65% of the company's shares.
It expects to complete the sale June 30.
Shares in PuriCore were trading up 1.4% at 49.67 pence Wednesday, having touched an intraday high of 53.88 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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