Coloplast A/S, Europe's largest maker of colostomy products, agreed to sell its breast-care unit to a German buyout firm for 762 million kroner ($133 million) to focus on its larger colostomy, urology and wound care divisions.
Granville Baird Capital Partners Advisors Ltd. will pay cash for the unit, which makes prosthetic breasts for women who've had mastectomies. The transaction is expected to close by March 31, the Humlebaek, Denmark-based Coloplast A/S said in a statement to the stock exchange today. Coloplast will book a one-time gain of 440 million kroner from the sale, according to the release.
Coloplast said its fiscal-year revenue will drop by about 500 million kroner because of the sale, although it kept its forecast for full-year revenue gaining 22%. The company is trying to be the biggest in each of its areas, and last year bought Mentor Corp.'s urology unit for 2.88 billion kroner. „The price seems fair,” said Peter Bertram Andersen, an analyst with Denmark's No. 2 lender Jyske Bank A/S in a research note on the Silkeborg, Denmark-based bank's Web site. Andersen repeated his „buy” recommendation of Coloplast shares.
Sales in the breast-care division fell 1% to 104 million kroner in the fiscal Q1, the company said earlier this month. It was the company's only unit to have revenue decline in the period. Coloplast said full-year earnings before interest, taxes, depreciation, and amortization margin will be between 18 and 19%. The company also expects sales in 2012 to be 14 billion kroner, down from an earlier estimate of 15 billion kroner. ABN Amro is the financial adviser on the sale, Coloplast said. Coloplast shares were unchanged at 523 kroner at 10:08 a.m. on the Copenhagen Stock Exchange. (Bloomberg)