Sale of In Vitro Business

2 July 2024 - ArborGen Holdings Limited (NZX: ARB) (ArborGen or the Company) advises that it has now completed the sale of its in vitro services business for USD$4 million. The proceeds will be used to pay down debt and allow for investment into growth and productivity opportunities. ArborGen expects to realise around $300,000 in annualised savings from the sale of the business. The sale excludes the associated laboratory building for which a lease and/or sale process remains ongoing, which should also lead to further savings.

As previously advised, ArborGen has been undertaking a strategic review of assets within the business, to ensure these meet the Board’s investment criteria and provide value for shareholders. The in vitro business was built through investment with additional acquisitions over the last two decades. This is no longer considered core to ArborGen’s business, which is focused on MCP® advanced genetics seedlings for which in vitro technology is not required.

CEO of AborGen, Justin Birch, said: “The sale is in line with our strategy to streamline our business and utilise our funds to invest into higher return opportunities. Our overall goal remains steadfast - to drive sales of our advanced genetics seedlings in our target markets in the US South and Brazil. The sale proceeds and cost savings will enable our continued investment in new genetics, nursery expansion and improvements, a stronger team and other strategic initiatives.”

ENDS


Authority for this announcement:
Justin Birch, President and CEO, ArborGen Holdings Limited

For more information, please contact:
Jackie Ellis, Ellis and Co e: [email protected], t: +64 27 246 2505

ArborGen
ArborGen is the leading supplier of advanced seedling genetics to the global commercial forestry industry. Employing state-of-the-art technology, ArborGen is developing high-value products that significantly improve the productivity of a given acre of land by enabling our customers to grow trees that yield more wood per acre with greater consistency and quality in a shorter period of time. For more information, please visit ArborGen’s website at www.arborgen.com

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Announcement PDF