- Sigma Healthcare (SIG) has signed the final contracts to sell two of its distribution centres for $172 million
- The original contract was for a part sale of four distribution centres
- However, the final deal has seen the full sale of the land and buildings at Kemps Creek in New South Wales and Berrinba in Queensland
- The centres will be leased back to Sigma for 15-years for approximately $8 million per year
- On market close, Sigma is up 2.26 per cent and is trading for 68 cents per share
Sigma Healthcare (SIG) has officially signed the final contracts to sell two of its distribution centres for $172 million.
The original contract was for a part sale of four distribution centres, however, the final deal has seen the full sale of the land and buildings at Kemps Creek in New South Wales and Berrinba in Queensland.
The centres will be then leased back to Sigma for 15-years, with two five-year options to extend. The first year lease will cost approximately $8 million annually.
Sigma will keep the ownership of its newly constructed distribution centres in Canning Vale, Western Australia, and Truganina, Victoria.
Funds from the sale will go towards its net debt, making it than $100 million.
CEO and Managing Director Mark Hooper says this deal is a great outcome for Sigma.
“This puts Sigma in a great position. We have restructured our business to deliver a more efficient base, renewed our Distribution Centre Network to arguably be the best in the industry, and are well advanced in upgrading our entire IT infrastructure,” he said.
“At the same time, we have retained balance sheet strength and flexibility to drive the business forward,” he added.
Final settlement of the deal is expected to be completed by the end of the month. Sigma will report its first half of 2021 results on September 10.
On market close, Sigma is up 2.26 per cent and is trading for 68 cents per share.