Cardiff-based home testing healthcare business MyHealthChecked (MHC) has struck a deal to sell its trading subsidiary to pharmacy and retail giant Boots.
Subject to shareholder approval, the Alternative Investment Market listed business will offload its loss-making subsidiaryin a £2.37m cash deal.
The company has worked with Boots since May 2021, adding its wellness portfolio and digital offering in 2023.
Following completion of the sale, chief executive Penelope McCormick will resign with immediate effect from the board to join Boots as managing director of Concepta, while Adam Reynolds will become executive chairman of MHC
As a cash shell MHC will have balances of around £5.7m, after deducting all expenses associated with the disposal. It is proposed that it would review acquisition opportunities in a variety of sectors, as well as considering a return of cash to shareholders. The takeover of Concepta has been unanimously backed by the board of MHC having concluded that as it will remain loss-making for the foreseeable future its disposal for cash is in the best interests of shareholders and the company as a whole.
Ms McCormick said: “Although positive long-term growth is a realistic expectation for wellness testing, the value potential can only be realised via distribution through a variety of services; testing embedded as part of a wider healthcare ecosystem; and the evolution of healthcare driven by government policy.
“During this past year, operational costs have not been offset by Covid sales, demand for which has declined significantly, and despite growth in the sales of wellness tests and tight cost controls, the loss for H1 of the current year has been broadly comparable to the prior year.
“We have regularly updated shareholders throughout the development of a longstanding working relationship with Boots, which has potential to be a significant player in the growth of home testing. As we look to the future, we have identified Boots as the right partner to take forward the MHC portfolio and drive home-testing as part of a wider range of healthcare services.
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“As an organisation with deep retail product knowledge and pharmacy expertise, the board identified from the onset that a partnership with a trusted brand, with digital reach and a bricks and mortar footprint would be essential in leading the way in growing the sector. It is also clear that our digital platform supports long-term growth potential by underpinning the end-to-end customer journey, which firmly places testing as part of a wider service and product offering and builds a longer-term relationship with the end customer.
“This is a very exciting time for consumer healthcare in the 海角视频, and we are delighted that our trusted portfolio and digital platform have been identified as an enabler in the drive to offer meaningful health services in the future.”