aap Implantate AG has ended negotiations related to the sale of aap Biomaterials GmbH on short notice.
"We were convinced until the end that we could close the transaction at attractive and mutual acceptable conditions but negotiations stalled at a critical point," said Bruke Seyoum Alemu, CEO of aap Implantate AG. "For us the focus was, from the outset, on concluding a transaction subject only to terms and conditions that are implementable in a reasonable period and reflect the right value of the company from a comparable transaction point of view."
Here are five things to know:
1. The company was in advanced stage discussions with a consortium of private equity bidders, but sale terms were not agreed upon.
2. Mr. Alemu said the company is "under no pressure" to make a sale of the subsidiary.
3. The company drew up its consolidated financial statement as of the end of 2014 on the assumption that it would sell aap Biomaterials GmbH, stating it as a discontinued operation. However, now the company advises the subsidiary be "treated and presented as part of the aap Group."
4. Since the negotiations have broken down, there will be extensive adjustments to the complete consolidated financial statement as of Dec. 31, 2014, and a delay in publication is expected. However, the company still plans to publish its consolidated and audited results for last year.
5. aap Implantate plans to continue growing aap Biomaterials GmbH, which has been characterized by strong cash-flows.
"As part of our strategy we continue to consistently pursue the objective of transforming aap Implantate into a leading European trauma company," said Mr. Alemu.