27 June 2019
Sonic Healthcare sells its interest in GLP Systems, Germany
Sonic Healthcare Limited ("Sonic") (ASX: SHL ; ADR: SKHHY) is pleased to announce that it has sold its 85% shareholding in GLP Systems GmbH ("GLP"; headquartered in Hamburg, Germany) to Abbott (headquartered in Abbott Park, IL, United States). Abbott has also acquired the remaining 15% interest in GLP.
With the significant assistance of Sonic Healthcare staff and laboratories, GLP has developed a cutting-edge laboratory automation system which has been installed in eight Sonic laboratories in Australia, the UK and Germany, with more planned. GLP's automation solutions have also been installed in third-party laboratories in eight European countries.
Sonic has determined that GLP's potential will be more fully realised in conjunction with a suitable partner in the IVD equipment market, and that GLP is not core to Sonic's business. As a leading global player in this market, Abbott is the ideal partner for GLP, its customers and team of 70 staff.
The sale of GLP will generate an after-tax profit to Sonic of around €30 million (~A$48 million). Approximately €80 million (~$A130 million) of cash (comprising sale proceeds and shareholder loan repayments) will be returned to Sonic, which will be used to repay existing Euro debt, creating additional balance sheet capacity for further laboratory acquisitions. FY 2019 revenue for GLP is approximately €14 million (~$A23 million).
The sale documentation includes a long-term collaboration agreement between Sonic and Abbott, as Sonic will continue to be an important customer of GLP.
For further information regarding this announcement, please contact:
Level 22, Grosvenor Place, 225 George Street, Sydney NSW 2000 Australia P +61 2 9855 5444 F +61 2 9878 5066 W www.sonichealthcare.com.au
Sonic Healthcare Limited ABN 24 004 196 909