Inotiv divests Israeli-based businesses
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West Lafayette-based Inotiv Inc. has completed the sale of its operations in Israel in a deal valued at nearly $4 million. The pharmaceutical testing company said this week the sale will allow for further investment in its growing business units.
Inotiv said it sold the businesses to Harlan Holdings Ltd. for $1.2 million in cash, as well as a note receivable of $2.5 million, which will be paid in two annual installments.
Chief Financial Officer Beth Taylor says the businesses “are engaged in the production of research models and providing clinical research services in Israel,” but declined to provide more details.
The operations employ about 60 people, though it was not specified if any jobs would be affected by the deal.
Additionally, Inotiv will assume ownership of the Teklad diet manufacturing facility in the U.S., which it had been previously leasing. The facility makes feed and bedding for rodents used in research, and Inotiv said it has entered into a five-year supply agreement with Harlan Holdings for such products.
“We are particularly pleased to be able to purchase the facility in which we manufacture products to meet the nutritional and comfort needs of research animals across the globe,” Taylor said in an email to IIB. “This business has been growing and this will allow for us to make further investments in that facility as needed.”
Inotiv took ownership of the Israeli operations with its $545 million acquisition of Envigo RMS in Indianapolis in 2021. Taylor said the sale is part of Inotiv’s ongoing efforts to streamline its operations, including divesting areas that “are not key to our growth.”
“As part of this process, we have been consolidating facilities to optimize our operations,” Taylor said. “This also includes restructuring our transportation system and selling assets which are not needed or not part of our long-term plans.”
Inotiv’s site optimization efforts include the closure of dog breeding facilities in Virginia, as well as two isolator facilities in Indianapolis.
In its latest earnings report, the company said its facilities in Haslett, Michigan; Gannat, France; and Blackthorn U.K. are currently available for sale.
“Inotiv will continue to fully align our business units and our facilities to assure we deliver industry-leading and world class scientific products and services to our partners in the life sciences sector,” Taylor said. “We also want to be an efficient, high-quality provider and to assure the wise use of our resources to maximize shareholder value.”