Alesco Corporation Limited (ALS) today announced that it has entered into an agreement to sell its Scientific & Medical division (Biolab) to Thermo Fisher Scientific Inc. for $175 million. The transaction is unconditional and is expected to be completed on 30 April 2009. The profit on sale before tax (but after transaction costs) is estimated to be approximately $65 million. This will result in significant reduction in debt resulting in a strong balance sheet and enhanced interest cover.
Commenting on the sale process, Alesco CEO Justin Ryan said:
“We are extremely pleased with this outcome. Over the past ten years Alesco has delivered its strategy of building a portfolio of leading industrial brands through a combination of acquisition and operational improvement initiatives. Biolab is a great example of this strategy in action. The achievement of an earnings multiple significantly higher than the current multiple being applied by the market to the Alesco group is clearly in the best interests of shareholders and recognizes the value that consistent and focused execution of our strategy can generate over time,” he said. Marijn E. Dekkers, President and Chief Executive Officer of Thermo Fisher Scientific said, “This acquisition significantly strengthens our presence in these markets, and will enable us to better serve customers in both public and private sectors through an expanded range of offerings.”
Alesco retains an attractive and diverse portfolio of leading industrial brands with a significant focus on the renovations and residential sectors as well as the water and infrastructure sectors.
Tags: Alesco, ALS, Asset Sale
