Deepverge, a scientific research group, has made the strategic decision to sell its Ireland-based subsidiary Glanaco to the current management and previous owners for 1 euro ($1.1). This move comes as part of Deepverge's plan to reduce costs and address its financial situation.
By selling Glanaco to Tony Ryan and Michael Fitzgerald, Deepverge aims to save jobs and alleviate the group's debt, which is estimated to be around EUR500,000. Despite this sale, Glanaco will continue to provide necessary services to Deepverge's Labskin and Modern Water businesses during a transitionary period.
Recognizing its financial constraints, Deepverge acknowledged in June that it lacked sufficient cash flow to sustain its operations. The company also expressed doubts about its ability to repay all creditors. Consequently, Deepverge decided to pursue the sale of one or more business units to maximize their remaining value.
As a result of these ongoing efforts, Deepverge anticipates that the current process will ultimately lead to the sale, closure, or administration of all its subsidiaries.
Glanaco, which was acquired by Deepverge in March 2022, reported a pretax loss of EUR75,451 in 2022 with a revenue of EUR1.7 million.
Deepverge's decision to divest itself of Glanaco demonstrates a commitment to streamlining operations and focusing on core activities. This strategic move will help Deepverge optimize its resources and navigate its financial challenges effectively.