aap Implantate AG divests its contract manufacturing business for EUR 18 million cash to private Equity company
EMCM develops and manufactures sterile medicinal products for the Biomaterials, Pharmaceuticals and Tissue Engineering markets and achieved revenues of EUR 12 million in 2013.
The transaction will result in a one-time non-cash deconsolidation effect of approx. EUR 4.0 million to EUR 4.5 million. In the process, the company decided to adjust its capitalization policy for its Biomaterials activities and to stop all respective development projects. This will result in a one-time non-cash extraordinary depreciation of capitalized development costs of approx. EUR 2.3 million. The mentioned effects will be accounted for in the consolidated financial statements for 2013 and will affect the EBIT. The contract manufacturing business will be presented as a discontinued operation in aap's consolidated financial statements for 2013.
The transaction supports the Company's strategy to focus on its high growth Trauma and bone cement business. The proceeds will be used for accelerating the development of further LOQTEQ®, silver coated and magnesium trauma products. Furthermore, aap will start evaluating strategic acquisition opportunities that support the trauma growth strategy.
aap will comment the transaction in more detail and elaborate more on the financial impact in a separate press release.
aap Implantate AG
aap is a global medical device company headquartered in Berlin, Germany that develops, manufactures and markets innovative biomaterials and implants that are used in orthopedic procedures. The Company's products, which include a full line of plating systems, cannulated screws and bone cement products, are primarily used in the orthopedic specialty areas of trauma and spine repair. The Company's products are sold through its direct sales force, distribution partners and license agreements with OEM partners. aap's stock is listed in the Prime Standard segment of the Frankfurt Stock Exchange. For more information, please visit www.aap.de, or download the Company's investor relations app from the Apple's App Store or Google Play.