12th May 2025 13:56
(Alliance News) - Venture Life Group PLC on Monday reported the sale of its contract manufacturing business as it looks to shift to a pure-play consumer healthcare brand.
Venture Life is a Berkshire, England-based developer and manufacturer for the self-care market.
It said it has entered a binding agreement with BioDue Spa and a portfolio company of The Riverside Company, to sell skin care contract manufacturer, Biokosmes SRL, and contract development and manufacturing business Venture Life Manufacturing AB.
The total consideration of the sale is EUR62.0 million on a cash free, debt free basis, with Venture Life noting it has also agreed to the sale of some non-core products.
It noted that the consideration will be payable in full and in cash upon completion.
Shares in Venture Life rose 9.7% to 49.38 pence on Monday afternoon in London.
BioDue is a Tavarnelle Val Di Pesa, Italy-based contract development and manufacturing organisation, while The Riverside Company is a New York-based, global investment firm.
Venture Life said this deal forms part of its effort to streamline its operations and shift away from capital intensive manufacturing operations.
It will now direct increased cash flow into the commercialisation, growth and development of its higher margin core brands, such as Balance Activ, Health & Her/Him, and Lift.
Following the transaction, Venture Life said it will become a pure-play consumer healthcare brand focused on 'proactive healthy longevity' for the consumer.
It noted that some of the proceeds will be utilised to pay down the drawn balance on its revolving credit facility, which stood at GBP20.6 million as of April 30. It added that the facility will remain in place.
Venture Life further stated that it expects to report a one-off profit on the asset disposal of around GBP24.1 million for 2025.
The firm expects the sale to complete in the third quarter of this year, with it conditional upon customary conditions and approval being granted under the foreign direct investment regimes in Italy and Sweden.
It expects to report its 2024 full-year results on June 19.
Chief Executive Jerry Randall commented: "This is an exciting transaction and achieves many objectives for Venture Life. In particular, it enables us to simplify the structure of the business, invest in our Power Brands and become a pure play consumer healthcare platform with a strategic focus on products and brands that support proactive, healthy longevity in their customer base.
"The significant cash and debt resources that the group will have at its disposal going forward will enable us to invest behind our current exciting Power Brands to drive growth ahead of peers and capitalise on some of the exciting earnings accretive M&A opportunities that exist in the consumer healthcare space."
By Christopher Ward, Alliance News reporter
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