As part of a deal concluded by its parent company, Ascendis Health Limited, Nimue Skin Technology will be sold to Amka Products for an amount of R102 million.
Amka is a South African home grown company with over 60 years in the health and beauty industry and boasts a portfolio of 50+ brands.
According to a report published by moneyweb.co.za on 1 February 2022, Ascendis Health SA Holdings Proprietary Limited (“AHSA”), a wholly-owned subsidiary of Ascendis Health, has entered into three separate sale agreements in terms of which it will dispose of its direct and indirect interests in the entities known as “Ascendis Pharma”, “Nimue” and “Ascendis Medical”.
Nimue, the Skin business unit that forms part of the Ascendis Health Consumer business, develops, markets and distributes professional and premium skin and body care brands. The acquisition deal with Amka Products requires Nimue to sell that part of its business that relates to selling Solal branded skincare products, to Ascendis Consumer Brands Proprietary Limited. As the Nimue disposal is a Category 2 transaction, it doesn’t require shareholder approval.
A Business Report article published on iol.com on 3 February quotes Ascendis Health as saying that the sale of the above three subsidiaries will “leave the business debt-free and with approximately R200 million of cash reserves after accounting for costs and deductions, to reinvest into the rebuilding of the Ascendis group’s core operations”.
This comprises the Ascendis Consumer Brands business – i.e. various vitamin, mineral and supplement brands such as Vitaforce and Junglevite. The Solal brand mentioned above will now be part of this business, which also has a manufacturing capability. (Additional Source: inceconnect.co.za)