Lifecore Biomedical Inc., a fully integrated contract development and manufacturing organization (CDMO), has entered into a sales agreement with a non-competitive buyer for the company’s previously purchased, but not yet installed, high-speed, multi-purpose 10-head isolator filler.

Under the terms of the agreement, the buyer will pay Lifecore an aggregate purchase price of $17 million in exchange for the 10-head filler.

“As we continue to execute our growth strategy, we have continued to carefully examine all aspects of the business to identify opportunities for right-sizing and efficiency,” said Ryan Lake, chief financial officer of Lifecore. “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 monetize unused equipment and enhance our financial position.”

Moving forward, the company intends to continue to carefully evaluate equipment expenditures to ensure that future capital investments are aligned with projected operational needs.