NEW YORK (GenomeWeb News) – Warnex today said that it has inked an agreement with an unnamed private company to purchase Warnex's Analytical Services division for more than C$1.1 million (US$1.1 million).
The deal comes around a week after Warnex sold its medical laboratories division to Gamma-Dynacare Medical Laboratories for C$7.5 million (US$7.3 million).
The Analytical Services division provides pharmaceutical and biotech firms with quality control services including chromatography, microbiology, and method development and validation. Laval, Quebec-based Warnex expects to close the deal around Jan. 15, 2012.
Warnex will receive C$400,000 in cash and an additional cash payment equal to the working capital of the division on the closing date, which is expected to be roughly C$700,000. In addition, Warnex will receive a 15 percent passive equity interest in the acquirer, and "other valuable consideration," it said.
"This transaction is consistent with our strategic plan and the commitment we made to reduce long-term debt," Michael Singer, chairman of the executive committee of the board of directors, said in a statement. "It also allows us to retain substantial upside in the Analytical Services business that we pioneered."