BICO has divested GinolisNovember 13, 2023 7:00 am
BICO has divested Ginolis through a management buy-out to Ginolis’ current CEO Kauko Väinämö. The purchase price amounted to €1. The transaction is estimated to result in a divestment loss of SEK -25m, which is a non-cash item. Final divestment result will be reported and disclosed in the Q4 report.
IP-rights and licenses related to the patented PMBi dispensing pump has been carved out from the transaction and transferred to BICO. Ginolis House will also be carved-out from the transaction. Closing of Ginolis House is subject to establishment of a Finnish entity with real estate VAT registration at the Finnish tax authorities.
BICO is entitled to 70 percent of net proceeds if the company is sold within three years after closing.
The rationale behind the divestment is that the company has not transitioned fast enough to mitigate the post-pandemic downturn. Ginolis has been right sized during 2023, but order intake has not been restored according to expectations.
Information about the Ginolis divestment is also included in the BICO Q3 report which will be released tomorrow, Tuesday November 14, 2023, 07:00am CET and BICO management will also comment on the divestment in the Q3 Earnings call, which will take place later the same day at 10:00am CET.