BioLife (NASDAQ:BLFS) sells subsidiary, aims for stronger finances
BioLife Solutions (NASDAQ:BLFS), a prominent developer and supplier in the bioproduction sector has successfully completed the sale of its wholly owned subsidiary, Global Cooling.
This strategic move marks a significant shift for the company as it aims to streamline operations and enhance financial metrics.
Roderick de Greef, Chairman and CEO of BioLife, expressed satisfaction with the completion of the divestiture, stating, "After a thorough and extensive process, we’re pleased to have completed the divestiture of the Stirling freezer business."
He highlighted the financial benefits of the sale, noting that it is expected to "immediately eliminate several million dollars of quarterly cash burn and removes product warranty liabilities, which totaled $7.5 million as of December 31, 2023."
De Greef further elaborated on the expected positive impacts of the transaction, including potential increases in growth rates for total revenue and adjusted EBITDA, as well as an expansion in gross margin.
The transaction, which is structured as a stock sale, required $7 million in cash to remain on the balance sheet of GCI and the repayment of $2.6 million in GCI long-term debt.
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