NOTV - Inotiv Announces the Sale of its Israeli Businesses to Harlan Holdings Ltd. | Benzinga
WEST LAFAYETTE, Ind., Aug. 29, 2023 (GLOBE NEWSWIRE) -- Inotiv, Inc. (NASDAQ:NOTV) (the "Company", "We", "Our" or "Inotiv"), a leading contract research organization specializing in nonclinical and analytical drug discovery and development services and research models and related products and services, today announced the completion of the sale of its businesses in Israel. The sale complements Inotiv's site optimization plan for the Research Models and Services segment of the business.
The Company received cash of approximately $1.2 million, including an adjustment for the cash balance at the closing of the sale, a note receivable of approximately $2.5 million, including an adjustment for certain reimbursed costs, to be paid in two annual installments on the first and second anniversaries of the closing, and ownership of the Teklad diet manufacturing facility in the U.S., which the Company previously leased, as part of the consideration received for this sale. Additionally, the Company entered into a five-year supply agreement with the buyer for certain of its diets and bedding. The Company entered into a four-year agreement with the buyer, in which the buyer will have exclusive rights to breed and sell all rat and mouse research models of the Company within Israel, and the Company will receive a 2% royalty during this four-year period.
"We are pleased with the outcome of this transaction, as well the progress made to right-size our global footprint," said Robert Leasure, Jr., Inotiv's President and Chief Executive Officer. "With our attractive and competitive profile as a full-service, mid-sized CRO and research model and diet provider, we remain well positioned to maintain strong growth of our businesses. I am also grateful for the contributions made by the Inotiv team as we collectively address both the challenges and opportunities facing our business and industry while delivering a ...