Venture Life has completed the sale of its Ultradex and Dentyl oral-care brands to Covestus Holdings for up to £4.5 million.
The AIM-listed consumer healthcare group received £3.75m in cash on completion, with a further earn-out of up to £750,000 dependent on the assets hitting agreed trading targets over the next 12 months.
The Berkshire-based firm is focusing on its faster-growing, higher-margin ‘power brands’ Balance Activ, Health & Her/Him, Lift and Earol.
In its last financial year, the oral care assets generated £4.3m of revenue and £400,000 of adjusted EBITDA.
Management has said that the proceeds will strengthen the balance sheet and support its acquisition strategy in core health-longevity categories, while also funding innovation and commercial growth across the remaining brand portfolio.
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“I am pleased that we have been able to divest of these non-core assets to a new owner that will continue to develop them,” said Venture Life CEO Jerry Randall.
“As we have indicated before these assets no longer form part of our strategic vision for Venture Life, so the divestment allows us to recycle the funds raised into our core focus categories and brands working out our five-pillar strategic growth plan.
“I am delighted with the post divestment progress since we disposed of our CDMO businesses earlier this year, and the collaboration with the Healthea Group (the purchasers of the CDMO businesses) where we are growing and strengthening the ongoing relationship for our mutual profitable growth.
“As well as generating significant funds for us to drive the growth of Venture Life, the divestment to the Healthea Group has also bought significant operational benefits including accelerated innovation opportunities and strengthened quality of supply.
“These two divestments have significantly simplified the Group and in conjunction with our new Microsoft D365 ERP system, which is now going live, we have a much more streamlined, agile and scalable business.”
Venture Life floated in 2014 with a share price of around 107p.
This now sits at 61.65p and it has a market cap of £78.7m.