Sorin Group (Milan: SRN) has sold its vascular therapy business to Italian private equity firm IP Investimenti e Partecipazioni SpA. No financial terms were disclosed.
Sorin Group (MIL:SRN) (Reuters code: SORN.MI) announced today that it has successfully closed the divestiture of its Vascular Therapy Business Unit to CID Investimenti S.r.l., an investment consortium led by the independent private equity firm IP Investimenti e Partecipazioni S.p.A.
The deal includes provisions for sharing of future proceeds from certain transactions regarding the intellectual property portfolio.
Through this operation, CID Investimenti S.r.l. becomes the new owner of the entire Sorin coronary vascular therapy business worldwide, including its unique intellectual property portfolio.
“The closing of this transaction is a key milestone for Sorin Group. It confirms our commitment to concentrate our resources on our three cardiovascular businesses: Heart Valves, Cardiopulmonary and Cardiac Rhythm Management,” said André-Michel Ballester, Sorin Group C.E.O.
This transaction follows the sale of Sorin’s endovascular business to Datascope in June of 2008.
As a consequence of the divestiture, Sorin Group will deconsolidate retroactively as of January 1st 2008 the results of the coronary Vascular Therapy business activities line by line. These results will be recognized as Earnings from discontinued operations.
The estimated impact will represent (on a full -year basis):
Revenues – € 17 million
EBIT +€ 6 million
EBITDA +€ 3 million
Net Debt will also be positively impacted by approximately € 3 million in 2008, as a result of the net proceeds of the disposal, and by an additional € 8 million in 2009, as a result of the settlement of the receivables and payables associated with the Vascular Therapy Business Unit.
The consolidated estimated loss on disposal of assets associated with the divestiture will be approximately € 7 million, including a € 1 million restructuring charge for realignment expenses associated with the divestiture.
About the Sorin Group
The Sorin Group (www.sorin.com), a world leader in the development of medical technologies for cardiac surgery, offers innovative therapies for cardiac rhythm dysfunctions, and the treatment of chronic kidney diseases. At the Sorin Group, more than 3,500 employees work to serve over 5,000 public and private treatment centers. Every year, over 1 million patients are treated with the devices of Sorin Group in more than 80 countries.