B.R.A.I.N. Biotechnology Research And Information Network AG / Key word(s): Disposal
B.R.A.I.N. Biotechnology Research And Information Network AG: BRAIN AG sells its majority stake in Monteil Cosmetic International GmbH
25-Jun-2019 / 12:11 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
BRAIN AG sells its majority stake in Monteil Cosmetic International GmbH
25 June 2019
BRAIN AG (B.R.A.I.N. Biotechnology Research and Information Network AG) has concluded an agreement to sell all shares held by BRAIN AG (68.3%) in the loss-making Monteil Cosmetics International GmbH ("Monteil") to Wilde Cosmetics GmbH. The latter acted most recently as a minority shareholder of Monteil. The transaction will be completed on 30 June 2019. The contracting parties have agreed not to disclose financial details.
The Supervisory Board of BRAIN AG was informed about the process and approved the transaction in advance by means of a circular procedure.
As of the fourth quarter of the current financial year, the loss-making division will therefore no longer be consolidated in the consolidated financial statements, thus unburdening future earnings accordingly.
The sale of Monteil and the corresponding cosmetics end customer B2C business is part of the strategy to concentrate the business of BRAIN AG and its affiliated companies on B2B business with industrial partners. Taking into account the purchase price, the sale of the Monteil shares will result in an impairment of intangible assets (goodwill) in the expected amount of EUR 1.7 million and an impairment of financial assets in the expected amount of EUR 0.2-0.3 million. The transaction has no substantial impact on the BRAIN Group's objective of achieving a double-digit increase in total operating performance and improved EBITDA at Group level in the current 2018/19 financial year.
Manfred Bender, CFO
Information and Explanation of the Issuer to this News:
B.R.A.I.N. Biotechnology Research and Information Network AG (BRAIN AG; ISIN DE0005203947 / WKN 520394) is one of Europe's leading technology companies in the field of industrial biotechnology, the core discipline of Bioeconomy. As such, BRAIN identifies previously untapped, efficient enzymes, microbial producer organisms or natural substances from complex biological systems that can be put to industrial use. The innovative solutions and products developed by help of this 'Toolbox of Nature' are successfully applied in the chemistry, the cosmetics and the food industries. BRAIN's business model is based on two pillars. The BioScience segment comprises mainly of the research and development business with industrial partners (the 'Tailor-Made Solutions' cooperation business), and the company's own research and development. The BioIndustrial segment consists mainly of the industrially scalable products business. Further information is available at www.brain-biotech.de/en.
And Information Network AG
Darmstädter Str. 34-36
Investor Relations Office
This press release contains forward-looking statements. These statements reflect the current views, expectations, and assumptions of the management of BRAIN AG and are based on information currently available to the management. Forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. There are numerous factors which could influence the future performance by and future developments at BRAIN AG and the BRAIN group of companies. Such factors include, but are not limited to, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, and other factors. BRAIN AG does not undertake any obligation to update or revise any forward-looking statements.
25-Jun-2019 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de