Home shopping retail group Findel is to dispose of its healthcare division (NRS) after entering into a conditional agreement with private equity company LDC, it has been announced today.
Supplying primary care equipment to public and private sectors, NRS is to be sold for £24 million and the deal is expected to be completed by April 26th 2013.
Employing approximately 500 people, NRS reported sales of £76.8 million for the year to March 30th 2013 and Findel noted in a statement that the division “is well positioned to capitalise on these growth opportunities”
Nonetheless, Findel explained that there were “few synergies” between NRS and the rest of the group while the business’s terms for contract renewal have created uncertainty over potential earnings growth.
David Sugden, Chairman of Findel, said of the move: “NRS is a good business with a leading position and a range of growth opportunities, the pursuit of which is better undertaken under new ownership.
“We believe that the proposed disposal of NRS is in the best interests of the Group and its shareholders.
“The disposal will enable Findel to better focus on the turnaround plans for the remainder of the Group, and will also help to strengthen the balance sheet by reducing Group borrowings.”