The Sonic Healthcare Limited (ASX: SHL) share price has edged lower this morning after announcing an asset sale.
In early trade the international medical diagnostics company's shares are down 1% to $27.05.
Despite this decline, the company's shares are still up an impressive 24% this year.
What did Sonic Healthcare announce?
This morning Sonic Healthcare announced the sale of its 85% stake in Hamburg-based GLP Systems to US-based Abbott. Abbott has also acquired the remaining 15% interest in GLP Systems.
The release explains that thanks to the significant assistance of Sonic Healthcare's staff and its laboratories, GLP Systems has developed a cutting-edge laboratory automation system which has been installed in eight Sonic laboratories in Australia, the UK, and Germany.
These automation solutions have also been installed in third-party laboratories in eight European countries.
However, management has determined that GLP Systems' potential will be more fully realised in conjunction with a suitable partner in the in vitro diagnostic device (IVD) equipment market, and that GLP is not core to Sonic's business.
As a leading global player in this market, it believes that Abbott is the ideal partner for GLP, its customers, and team of 70 staff.
What are the details of the sale?
According to the release, Sonic Healthcare's sale of GLP Systems will generate an after tax profit of around €30 million (~A$48 million).
Approximately €80 million (~$A130 million) of cash (comprising sale proceeds and shareholder loan repayments) will be returned to Sonic Healthcare. Management intends to use these funds to repay its existing Euro debt. This will create additional balance sheet capacity for further laboratory acquisitions in the future.
Elsewhere in the sector today, the CSL Limited (ASX: CSL) share price is down 0.5% and the Ramsay Health Care Limited (ASX: RHC) share price is also down 0.5% due to general market weakness.
