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Trinity Biotech to sell Fitzgerald Industries business to Biosynth for $30M
The Fly

Trinity Biotech to sell Fitzgerald Industries business to Biosynth for $30M

Trinity Biotech announced it has entered into an agreement to sell its Fitzgerald Industries life sciences supply business, consisting of Benen Trading Ltd and Fitzgerald Industries International, Inc, to Biosynth for cash proceeds of approximately $30 million subject to customary adjustments. Biosynth is owned, amongst others, by KKR, Ampersand Capital Partners and management. The sale is expected to close in April 2023. Trinity Biotech pursued this transaction as part of its plan to transform into a high growth innovator in diabetes care and decentralised monitoring and diagnostic solutions. Life sciences supply is no longer core to Trinity Biotech’s refined long-term strategy. This transaction is expected to significantly reduce the Company’s net debt by approximately 40% and is an integral step in strengthening its balance sheet in line with its refined strategic focus areas. The Fitzgerald life sciences supply business generated revenue of approximately $12 million in the year ended 31 December 2022, and was EBITDA positive. The approximately $30 million cash proceeds from Biosynth includes funding to Fitzgerald Industries to allow it repay intercompany loans owed to Trinity Biotech. The Company plans to initially use approximately $11 million of the proceeds of the sale to repay approximately $10.1 million of its senior secured debt held by Perceptive Advisors plus an approximately $900,000 early repayment penalty. In connection with this transaction, the Company has entered into an amendment to its senior secured term loan credit facility with Perceptive Advisors, which significantly reduces the Company’s minimum revenue covenants under that loan.

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