Confirmation of Sale of Alva manufacturing business
07 March 2022
Omega (AIM: ODX), the specialist medical diagnostics company focused on industry-leading Health & Nutrition and Global Health (CD4 and COVID-19) products, announces it has completed the conditional sale and purchase agreement (the “Agreement” or the “Sale”) with Accubio Limited, a wholly-owned subsidiary of Zhejiang Orient Gene Biotech Co. Ltd (“Orient Gene”) in relation to the sale of Omega’s diagnostic test kit manufacturing business and facility in Alva, Scotland, for a cash consideration of £1m.
The manufacturing business has been sold as a going concern, with approximately 93 full-time employees based in Alva transferring across with the business, with no resultant redundancies. The Agreement also covers the sale of certain fixed assets, including plant and equipment (although not any Government-funded equipment on site), as well as the assignment of the lease for the Alva site.
As previously announced, the transitional services agreement addresses the ongoing requirements for the site to continue to produce Lateral Flow Tests for Omega, particularly the VISITECT®CD4 Advanced Disease test. These arrangements cover the period to December 2022.
Jag Grewal, CEO of Omega, commented: “We are extremely pleased to confirm the sale of the historical Alva site today, ensuring job security for all employees transferring to Accubio. This is the first step in our planned strategy to reshape and restructure the business.”
|Omega Diagnostics Group PLC||www.omegadx.com|
|Jag Grewal Chief Executive Officer||via Walbrook PR|
|Chris Lea, Chief Financial Officer|
|finnCap Ltd||Tel: 020 7220 0500|
|Geoff Nash/Edward Whiley/George Dollemore (Corporate Finance)|
|Alice Lane/ Charlotte Sutcliffe (ECM)|
|Walbrook PR Limited||Tel: 020 7933 8780 or [email protected]|
|Paul McManus||Mob: 07980 541 893|
|Lianne Applegarth||Mob: 07584 391 303|
|Sam Allen||Mob: 07502 558 258|
About Omega Diagnostics Group PLC
Omega manufactures and distributes high quality in-vitro diagnostic products for use in hospitals, clinics, laboratories and healthcare practitioners in over 75 countries and specialise in the areas of health and nutrition and global health. www.omegadx.com