SYDNEY - Primary Health Care will sell the consumer business of Symbion Health, which it took over this year, to Sanofi-aventis for A$560 million ($717 million).
The agreement to sell the business to the French group's Australian arm follows a competitive sale process.
Primary said it would usethe proceeds from the sale to pay down debt facilities used to acquire Symbion in February.
"The sale of the consumer business will allow Primary to continue its focus on operating its core businesses and progress with the integration of the Symbion business acquired in February," Primary managing director Edmund Bateman said. The sale is expected to be completed on August 31.
It is conditional on an audit on the Symbion consumer accounts for the 2007-08 financial year and no material adverse change in the business.
Sanofi-aventis has received approval for the transaction from the Foreign Investment Review Board.
Bateman said the sale was a good outcome for all parties.
"Symbion consumer is a business with strong growth potential," he said.
"Symbion consumer employees and customers will benefit under the new ownership of Sanofi-aventis with its dedicated focus on the manufacture and marketing of healthcare products."
Primary had planned to sell both the consumer and pharmacy divisions of Symbion following its A$2.65 billion takeover.
But the sale of the pharmacy operation stalled after grocery wholesaler Metcash withdrew a proposed offer earlier this month, after the Australian Competition and Consumer Commission said it had some concerns about the deal.
"Primary continues to assess a number of options in relation to Symbion pharmacy, with a view of optimising value for Primary shareholders," Bateman said.
Analysts had expected Primary could get as much as A$1.1 billion from the sale of the two businesses, including about A$550 million for the consumer business.
Primary is carrying about A$2.5 billion of debt related to its acquisition of Symbion.
