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Trinity Biotech said life sciences supply is no longer a core part of its strategy and will use the sale proceeds to significantly reduce its debt.
Irish diagnostic solutions company Trinity Biotech has agreed to sell its life sciences supply business to Switzerland’s Biosynth, as the company is refocusing its business strategy.
The $30m deal will transfer ownership of the Fitzgerald Industries business, as part of Trinity Biotech’s plan to focus on diabetes care and other diagnostic services. The deal is expected to close at the end of this month.
Trinity Biotech develops point-of-care diagnostic technology to detect various diseases, disorders and to control diabetes. The company is listed on the NASDAQ exchange and its products are sold in more than 110 countries.
The Irish company said life sciences supply is no longer a core part of its long-term strategy, while it expects the sale to reduce its net debt by roughly 40pc.
The Wicklow-headquartered company will use $11m of the sale proceeds to repay its senior secured debt held by Perceptive Advisors, along with an early repayment penalty.
Trinity Biotech CFO and executive director John Gillard said it is the right time to exit the Fitzgerald Industries business and that the sale is a “key milestone” in repositioning the company’s balance sheet towards “growth opportunities”.
“This transaction should allow Trinity Biotech to reduce its debt servicing costs and provide capital for growth, transformation and potentially further debt reduction,” Gillard said. “We wish the Fitzgerald Industries team and Biosynth all the very best for the future.”
Trinity Biotech said Biosynth is “an excellent fit” for its life sciences business, which generated revenue of $12m last year. Biosynth is a supplier of critical raw materials and supplies pharmaceutical, life science and diagnostic sectors.
Biosynth CEO and president Dr Urs Spitz said the combination of Fitzgerald Industries and Biosynth’s acquisition of Dublin-based Aalto Bio last year extends the company to a “truly global scale”.
“The acquisition continues the expansion of our offering across complex chemicals, peptides and key biologics to help secure fragmented pharma and diagnostics supply chains,” Spitz said. “We are excited to work with the Fitzgerald Industries team to further grow and deliver the best to our customers.”
Last year, Trinity Biotech received a $45m investment from South Korea’s MiCo, in exchange for nearly 30pc ownership of the Bray-based company.
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