Ascendis Health sells three businesses for R480 million
The company embarks on a strategic review of its operations.
Health and wellness group Ascendis Health said it will sell three businesses within its Biosciences division to a consortium for R480 million, the company announced on Thursday.
Ascendis will sell the Efekto, Marltons and Afrikelp businesses as part of a strategic review, which is aimed at improving performance through focusing on organic growth, improved cash generation and enhanced profitability.
Ascendis will sell the Efekto, Marltons and Afrikelp businesses to a consortium comprising RMB Ventures Seven Proprietary, Nedbank Private Equity and certain members of the management of the Ascendis Biosciences division.
“Following our strategic business review last year the Biosciences division was considered as noncore to the group’s strategy and was identified for sale,” CEO Thomas Thomsen said.
“While these Biosciences businesses are performing well, they serve a different set of customers and require capabilities and skills that are not core to Ascendis Health.”
Marltons manufactures and distributes pet care and pet products. Efekto manufactures and sells home and garden pesticides, fertiliser and plant food products. Meanwhile, Afrikelp specialises in natural growth stimulants extracted from seaweed to improve the quality and quantity of agricultural crops.
The cash proceeds from the sale will strengthen the group’s financial position in the short term and be used to reduce debt levels and fund working capital, said Thomas
Ascendis, which also has operations in Cyprus, Hungary, Romania and Spain, said the remaining businesses in the Biosciences division, Avima and Klub M5, may be considered for divestment in the short to medium term.