ERBA Diagnostics (Miami Lakes, Florida) said its subsidiary, Diamedix, has agreed to sell its former facilities in Miami Lakes, Florida for $23 million. ERBA said it will use the net proceeds from the sale of the property for potential facilities purchases, potential acquisitions, and for general working capital.
"Due to our consolidation of operations and manufacturing to our leased facilities in Miami Lakes, Florida, we executed this purchase and sale agreement in an effort to redeploy the value of this vacant asset," said CEO Mohan Gopalkrishnan. "We believe the most effective, and tax-efficient, use of the net proceeds from the sale of the property will be a combination of reinvesting in facilities to accommodate our anticipated growth as well as applying a portion of it toward potential strategic acquisitions and the balance toward working capital."
The real properties, and the total of about 52,000 square feet of buildings located on the properties, are located at 2140, 2150 and 2160 North Miami Avenue, 2115, 2141 and 2155 North Miami Avenue, and 38 NW 22nd Street, in Miami Florida. As of Sept. 30, the net book value of the land, buildings and improvements being sold was $449,000.
The purchase and sale agreement provides for a 45 day examination period, during which the buyer has the right to conduct a due diligence investigation and terminate the purchase and sale agreement in its sole and absolute discretion.
ERBA Diagnostics offers a suite of clinical testing products throughout the U.S. and emerging markets.