Listed biotech company completes sale of its genetics business
Sheffield-headquartered aquaculture biotechnology company, Benchmark, has completed the sale of its genetics business area to Novo Holdings for an enterprise value of £260m.
The deal, which was first reported in November last year, comprises an initial consideration of £230m and contingent consideration of up to £30m.
For the last 12 months to 30 June 2024, Benchmark’s Genetics Business generated revenue of £57m and adjusted EBITDA of £14.5m. The net assets of the Genetics Business as of 30 June 2024 amounted to £52.8m.
Post completion accounts adjustments, based on the cash, debt and working capital position of the genetics business, as well as certain other specified liabilities agreed between the companies, the deal is expected to realise gross cash proceeds of approximately £194m, excluding any earn-out consideration.
Following repayment of Benchmark’s unsecured floating rate listed green bond and associated make-whole and swaps which currently amounts to around £63m as well as the drawn amount of about £23.75m under the group’s revolving credit facility, which is expected to complete on or around 15 April, net cash proceeds will be approximately £107.5m.
Details on the strategy of the continuing business and use of proceeds, further to what was disclosed on 25 November 2024, will be provided in mid-April.
