Ascendis sells Scitec business

16th April 2020

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

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JSE-listed Ascendis Health’s subsidiary, Ascendis Health International Holdings, has reached an agreement to sell its Scitec business unit to Dutch company Atlas Invest for €5-million.

This forms part of the group’s disposal of noncore and underperforming assets to reduce its debt levels.

In line with this strategy, the proposed transaction represents a good opportunity for the company to reduce its debt levels and thereby enhance its balance sheet and liquidity position, it says.

Scitec is a manufacturer and distributor of sports nutrition and other dietary supplements in Europe.

Over the past few years, Scitec’s financial performance has deteriorated, mainly driven by increased competition, profit erosion and volume losses caused by the loss of key partners.

As a result of the business’ weak performance, Ascendis in 2019 impaired all of Scitec’s goodwill.

The proposed transaction is subject to the fulfilment and/or waiver, where appropriate, of certain material conditions precedent.

The effective date of the proposed transaction will be the last business day of such calendar month in which the last condition precedent is satisfied; or, if the last business day of such calendar month is less than five business days after all of the conditions precedent have been satisfied, the last business day of the following calendar month; or such other date as the parties may agree.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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