Venture Life Group PLC Sells Contract Manufacturing Business to Focus on Pure-Play Consumer Healthcare Brand

Strategic Insights -

Venture Life Group PLC, a developer and manufacturer for the self-care market based in Berkshire, England, has entered a binding agreement to sell its skin care contract manufacturer, Biokosmes SRL, and contract development and manufacturing business Venture Life Manufacturing AB, to BioDue Spa and a portfolio company of The Riverside Company. The total consideration of the sale is EUR62.0 million, and Venture Life will direct increased cash flow into the commercialisation, growth, and development of its higher margin core brands, such as Balance Activ, Health & Her/Him, and Lift. Following the transaction, Venture Life will become a pure-play consumer healthcare brand focused on "proactive healthy longevity" for the consumer.

Key Takeaways:

  • Venture Life Group PLC has entered a binding agreement to sell its contract manufacturing business, Biokosmes SRL, and Venture Life Manufacturing AB, to BioDue Spa and a portfolio company of The Riverside Company, for a total consideration of EUR62.0 million.
  • The sale forms part of Venture Life's effort to streamline its operations and shift away from capital-intensive manufacturing operations.
  • The company will direct increased cash flow into the commercialisation, growth, and development of its higher margin core brands, such as Balance Activ, Health & Her/Him, and Lift.
  • Venture Life will become a pure-play consumer healthcare brand focused on "proactive healthy longevity" for the consumer.
  • The transaction is expected to complete in the third quarter of this year, conditional upon customary conditions and approval being granted under the foreign direct investment regimes in Italy and Sweden.
  • Venture Life expects to report a one-off profit on the asset disposal of around GBP24.1 million for 2025.
  • The company will use some of the proceeds to pay down the drawn balance on its revolving credit facility, which stood at GBP20.6 million as of April 30, 2024, but will remain in place.
  • Chief Executive Jerry Randall commented on the deal, stating that it simplifies the structure of the business, allows for investment in Power Brands, and enables the company to become a pure-play consumer healthcare platform.

Statistics:

  • EUR62.0 million: The total consideration for the sale of Biokosmes SRL and Venture Life Manufacturing AB.
  • GBP24.1 million: The expected one-off profit from the asset disposal for 2025.
  • GBP20.6 million: The drawn balance on Venture Life's revolving credit facility as of April 30, 2024.
  • 9.7%: The rise in Venture Life shares to 49.38 pence on Monday afternoon in London.
  • 2024: The year in which Venture Life expects to report its full-year results on June 19.
  • 2025: The year in which Venture Life expects to report a one-off profit from the asset disposal.

Sources:

  • Alliance News
  • Venture Life Group PLC
  • BioDue Spa
  • The Riverside Company