Hooper Holmes (HH) said Thursday that it entered into a definitive agreement to sell its Portamedic brand and other assets comprising the Company's Portamedic service line to American Para Professional Systems, Inc. or APPS for $8.4 million in cash, subject to adjustments. The sale also includes the transfer of certain Portamedic branch offices and call centers to APPS.
The transaction provides Hooper Holmes with capital to invest in its Health and Wellness and Lab service lines. Hooper Holmes said it retains its existing Portamedic working capital, which at June 30, 2013 was estimated to be $5.0 million, giving the Company $13.4 million of working capital from the transaction from the Portamedic service line as it focuses on growth supporting wellness programs, clinical research and government studies.
On a projected basis, Hooper Holmes' remaining service lines are expected to generate approximately $50 million of revenue in full year 2013.
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