™ (NASDAQ: SDIX), today announced that it has entered into an agreement to sell the assets of its water quality division to Modern Water plc for $4.5 million. Modern Water is acquiring the division’s intellectual property, its current inventory and commercial contracts, as well as its equipment and staff.
The acquisition is expected to be completed during the fourth quarter of 2011.
Francis DiNuzzo, SDIX’s President and CEO, commented, “We are pleased to announce our agreement to sell our Water Quality business to Modern Water. SDIX’s strategic focus has been and remains on the growth of our Life Science and Food Safety businesses which combined have averaged over 10% year-over-year quarterly revenue growth since the first quarter of 2010. This divestiture is consistent with our corporate strategy and enables us to focus even further on our core businesses. Notably, within our Life Science business, we aim to focus on the development of our next generation proprietary GAT technology which is achieving key milestones ahead of our initial schedule. We are working to develop our GAT technology towards a novel approach for the discovery of rare monoclonal antibodies to be used in high value applications such as biotherapeutics and biomarker discovery and validation. The net cash from this sale will strengthen our balance sheet and provides additional resources for key investments that we expect will drive further growth in our Life Science and Food Safety businesses.”
Mr. DiNuzzo went on to say “We are pleased to not only achieve great value for SDIX shareholders, but also to place our Water Quality assets, including the Microtox® products, with Modern Water. Modern Water is focused on the water market and will ensure that existing customers continue to receive the level of quality product and service that they have been accustomed to with SDIX.”