The Healius Ltd (ASX: HLS) share price is under the spotlight after the company announced it was selling Agilex Biolabs for $160 million.
Helius is one of Australia’s largest healthcare companies, committed to supporting “quality, affordable and accessible” healthare for Australians. It has 8,000 employees, providing Australia-wide specialty pathology services to consumers and their referring practitioners.
Agilex Biolabs
The ASX healthcare share said that it has entered into a binding agreement to sell Agilex Biolabs to a subsidiary of Novotech Health for an enterprise value of A$160 million.
On a pre-AASB16 basis (an accounting measure), the transaction represents a multiple of 19.8x Agilex Biolabs’ FY26 EBITDA (EBITDA explained).
The transaction is expected to result in cash proceeds of approximately $155 million after all separation and transaction costs. The ASX healthcare share doesn’t expect to incur any tax in relation to the transaction.
Completion of the transaction remains subject to customary conditions.
Why sell this business?
Healius said that in response to several unsolicited approaches from credible parties, in commenced a process to explore a sale of Agilex Biolabs.
The company decided that selling the business at a sufficiently attractive price would unlock value for shareholders as well as support management focus on the ongoing growth of its core pathology business.
The ASX healthcare share said this business operates as a standalone business and the sale won’t impact Healius’ pathology operations.
After the deal is complete, Healius will be in a net cash position. It will continue to assess its capital requirements and provide details on its intentions about how it will use the sale proceeds.
Management comments
The Healius Managing Director and CEO Paul Anderson said:
The sale of Agilex Biolabs delivers attractive value for Healius shareholders. The sale provides customers and team members of Agilex Biolabs with the opportunity to join an established and global business in Novotech, which has expertise in providing services to major biotechnology and
pharmaceutical customers.Healius will continue to execute on its strategies to grow and improve its core pathology business, which delivers critical diagnostic services to millions of Australians each year.
Final thoughts on the Healius share price
Clearly the market likes this update because the company has unlocked value in a way that the market wasn’t valuing it before. With $160 million, the business can improve its balance sheet and/or reward shareholders.
It’s not the sort of name I’m looking to buy for my own portfolio, but healthcare can be a defensive pick.
