South African healthcare provider Ascendis Health plans to dispose of smaller local noncore businesses as part of a strategic review aimed at improving cash generation and enhancing profitability.
Ascendis will sell its sports nutrition business, its direct selling and network marketing business and a production plant in Johannesburg.
“Following the review of our sports nutrition business, we have decided to focus solely on our biggest brand, Hungary-based Scitec, and will be divesting Ascendis Sports Nutrition in South Africa,” CEO Thomas Thomson said in a statement on Monday.
Ascendis Direct, the group’s direct selling and network marketing business operating in Southern Africa and Nigeria, will also be sold.
The group will consolidate its pharmaceutical manufacturing facilities in Gauteng and plans to sell its 23 000 m² production plant in Isando, Johannesburg.
The manufacturing facility in Wynberg, Johannesburg, will be retained and management expects to generate cost savings and manufacturing synergies.
“We are acutely aware of the impact of these decisions on our people and the affected employees will have the option to be transferred to the new owners to ensure job retention,” said Thomson.
The group also announced the appointment of Marnus Sonnekus as interim COO for South Africa.
He takes over from outgoing COO Cliff Sampson.