Ascendis Health to sell noncore assets in SA

South African healthcare provider Ascendis Health plans to dispose of smaller local noncore businesses as part of a strategic review aimed at improving cash generation and enhancing profitability.

Ascendis, which generates 60% of its profit outside South Africa and has operations in Spain, Cyprus, Romania and Australia, said it will sell its sports nutrition business, its direct selling and network marketing business and a production plant in Johannesburg.

These three assets were deemed noncore or underperforming, CEO Thomas Thomsen said.

“In this strategic review process, we have had to make difficult decisions but realise they are imperative to strengthen our market position and grow the company profitably,” Thomsen said.

The sale processes are underway and the proceeds will be reinvested to improve organic revenue growth and financial metrics, he added.

Ascendis Sports Nutrition, with brands such as SSN, has a fragmented product portfolio in South Africa, the company said. This has lead the group to focus solely on its biggest sports nutrition brand, Scitec.

Hungary-based Scitec, which was acquired by Ascendis in 2016, is one of the leading sports nutrition brands in Europe and exports products to more than 90 countries worldwide. – Reuters