Lifecore Biomedical Sells 10-Head Filler for $17 Million, Strengthens Financial Position

• Lifecore Biomedical has sold its unused 10-head isolator filler for $17 million to a non-competitive buyer.

• The sale follows the successful installation of a high-speed 5-head filler, doubling the company’s production capacity.

Lifecore Biomedical, Inc., a fully integrated contract development and manufacturing organisation (CDMO), has announced the sale of its high-speed, multi-purpose 10-head isolator filler for $17 million. The transaction involves a non-competitive buyer, with $7 million received at closing and the remaining payments expected in three instalments over the next 18 months.

The decision to sell the 10-head filler comes after Lifecore’s installation and qualification of a high-speed 5-head isolator filler, which has doubled its available production capacity. This new equipment is designed to support the company’s mid-term and long-term revenue growth objectives, offering state-of-the-art aseptic filling capabilities to existing and prospective customers.

Commenting on the sale, Ryan Lake, Chief Financial Officer of Lifecore, stated, “With the recent installation of our high-speed 5-head filler, we have built $300 million of revenue-generating capacity to support our mid-term and long-term revenue growth objectives. Accordingly, we felt that the sale of the 10-head filler, which we believe represented excess capital equipment, represented a compelling opportunity to monetise unused equipment and enhance our financial position.”

Lifecore’s new 5-head filler is GMP-ready and is being promoted for its aseptic isolation and multi-container filling benefits. Discussions with potential customers are underway as the company aligns its operational strategy with its growth ambitions.