Trinity Biotech TRIB shares are trading higher after the company announced the sale of its Fitzgerald Industries life sciences business.
What Happened: On Thursday, Ireland-based Trinity Biotech announced that it has entered into an agreement to sell its Fitzgerald Industries business for cash proceeds of $30 million to Biosynth. The sale is expected to close sometime this month.
Trinity stated that Fitzgerald is no longer part of Trinity’s core long-term strategy, and this sale is expected to reduce the company’s net debt by around 40%. Trinity plans to use ~$11 million of the proceeds to repay $10.1 million of its senior secured debt plus the $900,000 early repayment penalty.
“The cash proceeds significantly reduce Trinity Biotech’s net debt and this is a key milestone in repositioning the Company’s balance sheet profile to shift towards growth opportunities,” noted John Gillard, CFO and Executive Director at Trinity Biotech.
Trinity Biotech develops, acquires, manufactures and markets diagnostic systems, including both reagents and instrumentation, for the point-of-care and clinical laboratory segments of the diagnostic market.
According to data from Benzinga Pro, Trinity Biotech shares were up 14.3%, trading at $1.04 at the time of publication. The stock has a 52-week high of $1.49 and a 52-week low of $0.80. 100-day moving volume is at 23,937 compared to today’s volume of 116,577 at last check.