- Medical manufacturer Ellex Medical Lasers (ELX) has received ACCC approval to sell Ellex Lasers & Ultrasound to Lumibird Group SA
- The companies announced the sale in December 2019, but faced an investigation from the Australian Competition and Consumer Commission (ACCC)
- The ACCC has since approved the transaction, since it will not impact competition in the ophthalmology laser and ultrasound market
- Lumibird Group and Ellex have agreed to complete the transaction on June 30, 2020
- Ellex Medical Lasers shares are down 4.07 per cent today, trading for 59 cents each
Medical manufacturer Ellex Medical Lasers (ELX) has received ACCC approval to sell Ellex Lasers & Ultrasound to Lumibird Group SA.
The company first announced the agreement to sell its business to Lumibird on December 24, 2019. At the time, Ellex said that the share sale and purchase agreement was worth approximately $100 million.
The announcement also stated that Lumibird Group would pay cash to acquire all of the company’s laser and ultrasound products. However, this did not include the Ellex 2RT and Ellex iTrack business segments.
Completion of the transaction with Lumibird depended on meeting a number of purchase agreement conditions. In particular, the sale faced an investigation from the Australian Competition and Consumer Commission (ACCC).
Ellex announced the commencement of ACCC’s public review of the acquisition on May 1, 2020. At the time, the commission said that it would provide an indicative decision by June 25, 2020.
The ACCC investigated if the sale could have an impact on competition in Australia’s ophthalmology laser and ultrasound market. During the process, feedback from customers and other industry participants suggested quite the contrary.
The Australian market for such products is fairly small, in comparison to markets which the companies operate in globally. Also, Lumibird has relatively low sales in the ophthalmology laser and ultrasounds categories in Australia.
Based on suggestions that the sale will not impact competition, the ACCC recently came to a decision. In a public press release, the commission stated that it will not oppose the transaction.
Ellex welcomed the ACCC’s decision, which will allow the transaction to finally proceed. The company is also looking forward to the associated returns to shareholders which the transaction will bring.
Lumibird Group and Ellex have agreed to complete the transaction on June 30, 2020.
Ellex Medical Lasers shares are down 4.07 per cent today, trading for 59 cents each at 1:18 pm AEST.