Benchmark Holdings PLC (AIM:BMK) shares jumped around 13% higher in Monday morning’s trade after announcing the sale of its Genetics Business to Novo Holdings at an enterprise value of up to £260 million.
Novo Holdings, the parent shareholder of Ozempic-maker Novo Nordisk (NYSE:NVO), is paying £230 million in an initial upfront payment plus £30 million in future ‘earn-out’ consideration contingent on the business performance over the next three years.
The transaction is expected to close in the first quarter of 2025.
Looking ahead, Benchmark said it plans to focus on its advanced nutrition and health interests.
Meanwhile, proceeds from the sale will be returned to shareholders and to strengthen the company’s balance sheet by repaying outstanding debt.
“The transaction will unlock significant value and enable us to return capital to shareholders,” chief executive Trond Williksen said.
“In addition, it will enable us to reduce complexity and streamline the group structure to significantly reduce costs.
“Novo Holdings will be an excellent new owner of the genetics business and is in an ideal position to take the business forward."
In London, Benchmark shares traded up 4.65p or 13.15% to change hands at 40p each.