Sonic Healthcare has bailed out of the German healthcare sector by selling its majority stake a German automated laboratory system business for $130 million.
Sonic said yesterday it had sold its 85% stake in GLP Systems to American pharmaceutical giant Abbott Labs.
The sale will generate an after-tax profit of about $48 million. Abbott has also acquired the remaining 15% interest in GLP.
Sonic said over half the cash will be used to repay existing euro debt which in turn will free up the balance sheet for another acquisition.
The sale came just before the end of the financial year so the profit of around $48 million will help.
GLP’s automated pathology processing system has so far been installed in eight Sonic labs in Australia, the UK, and Germany.
“Sonic has determined that GLP’s potential will be more fully realised in conjunction with a suitable partner in the IVD (in vitro diagnostics). Equipment market and that GLP is not core to Sonic’s business,” Sonic said in a statement to the ASX.
The company’s shares fell 0.7% to $26.25 after being down 2% in early trading.
