Bothell-based cell processing company BioLife Solutions Inc. (Nasdaq: BLFS) on Thursday announced it has divested its cold storage company Global Cooling Inc.
BioLife, which acquired Global Cooling for roughly $250 million in 2021, is selling the subsidiary to GCI Holdings Co., an Ohio limited liability company, for $1. BioLife on Wednesday laid off about 47 employees as part of the divestiture, or roughly 11% of its full-time staff. BioLife gained 150 employees through the 2021 acquisition of Global Cooling, which does business as Stirling Ultracold.
BioLife didn't provide additional comment beyond a news release and a filing with the Securities and Exchange Commission.
"The sale is expected to immediately eliminate several million dollars of quarterly cash burn and removes product warranty liabilities," BioLife CEO Roderick de Greef said in a release.
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According to the release, the deal is structured as a stock sale, and it required $7 million in cash to remain on Global Cooling's balance sheet, along with the repayment of $2.6 million of Global Cooling's long-term debt.
BioLife expects charges of about $2.5 million tied to the layoffs, mainly between stock compensation and severance. The company expects those charges to come during the second quarter.
BioLife, founded in 1987, makes tools for the cell and gene therapy markets, as well as the larger biopharmaceutical market. It offers services in cell processing, storage, cold chain and thawing. In 2020 it acquired New Jersey-based SciSafe for $30 million, which expanded BioLife into the biostorage market.
In October 2023, BioLife raised $10.4 million through a private placement to New York City-based investment firm Casdin Capital. Private placements allow publicly traded companies to raise capital by selling shares directly to specific investors instead of to the public,
At the time of the placement, the company announced former CEO Michael Rice, who led the company for 17 years, was retiring. De Greef was previously the chief financial officer and chief operating officer before taking over as CEO.
