Birmingham-based medical equipment group Ferraris said yesterday it had taken a big step toward refinancing its struggling business with the £14 million sale of its Cardiac division.
The division, which trades under the Del Mar Reynolds name, has operations in Hertford, Edinburgh and Welyn Garden City as well as in California and Germany.
The deal, which will yield an expected £13 million once expenses are deducted, has been struck with the US-based Spacelabs Healthcare, which has a UK operation based at Chesham, Bucks.
It stands to receive a further £5 million if the business hits financial targets agreed with Spacelabs.
Ferraris, whose annual profits more than halved to £713,000 last year, and which is also looking to dispose of its Respiratory Division, said in January that it was keen to offload under-performing operations.
There was doubt that it could continue as a going concern without an infusion of new money.
The Cardiac division sell-off was a "key step in addressing the long-term financing requirements of the group", it said in a statement.
The deal, which is subject to shareholder approval, will be used to partly pay down debt.
Ferraris also announced yesterday that chairman Ian Dighe is to step down and will be replaced by non-executive director Paul Haycock as part of a restructuring of its head office operations.