EBOS sells Scientific arm

Healthcare sector business EBOS Group (NZX: EBO) today announced the sale of the company’s portfolio of Scientific businesses to VWR International, LLC, USA.

The scientific businesses included in the sale are Global Science and Technology in New Zealand and Quantum Scientific and Crown Scientific in Australia.

The transaction is subject to the satisfaction of certain conditions, with the completion date being 1.09.10.

Managing director Mark Waller said the transaction itself will be value positive for EBOS shareholders both in terms of a gain on sale from the transaction and the resultant cash flow.

“Upon receipt of the settlement funds, EBOS will be essentially debt free. EBOS intends to utilise its full financial resources to focus on and grow in the Healthcare market exclusively,” said Waller.

VWR International is one of the two leading global companies in the scientific market. This acquisition will spearhead their regional growth plans.

As part of a transition arrangement EBOS will continue to provide back office support services and share premises where this is currently the case.

“This transaction represents a true win/win outcome for both companies and will allow EBOS to further strengthen its market position in Healthcare, with substantial financial resources available following completion of this transaction,” said Waller.

EBOS will announce its FY10 on 26.08.2010. Waller said this result will reflect another excellent trading year for the group and is in line with market expectations.

EBOS’ share price is up 7c (1.09%) to NZ$6.50.

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