Atrium announces the sale of its Active Ingredients and Specialty Chemicals division to become a health and nutrition pure-play
Atrium Innovations Inc. announced that, as a result of the strategic re-evaluation process it has entered into a definitive agreement to sell its Active Ingredients and specialty chemicals division to AXA Private Equity for US$155 million in cash, subject to working capital adjustments. Total proceeds from the sale, including excess cash in the business, are expected to be US$165 million, subject to working capital adjustments.
The completion of the transaction is subject to certain customary conditions, including receipt of a limited number of regulatory approvals, but is not subject to any financing condition. The parties expect the transaction to be completed by mid May. Following the transaction, the main office of the Active Ingredients and Specialty Chemicals division will remain in Quebec City under the leadership of Charles Boulanger, President of the Active Ingredients and Specialty Chemicals division, and its existing management team.
The Company believes that the transaction will bring significant benefits:
- Atrium will become a health and nutrition pure-play, benefiting from the healthy living and ageing population trends;
- Focus Atrium's management and financial resources to achieve its strategic objectives, including its goal of becoming a world leader in its health and nutrition industry; and
- Provide financial flexibility to continue to play a consolidator role in the higher growth and highly fragmented sector with future accretive acquisitions.
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