Wellnex Life Limited (ASX/AIM: WNX) topped the market leaderboard after its shares surged 84% following the announcement of a binding agreement to sell its Pain Away business to Mentholatum Australasia for up to A$21.3 million.
The transaction comprises an upfront cash payment of A$19.8 million at completion, plus a potential earn-out of up to A$1.5 million linked to Pain Away’s normalised EBITDA performance during the 12 months following the sale.
Mentholatum Australasia is ultimately owned by Tokyo-listed pharmaceutical and consumer healthcare group Rohto Pharmaceutical.
Wellnex said the proceeds will allow it to repay approximately A$10.2 million of secured and unsecured borrowings, leaving the company debt-free at completion. Remaining funds will be used for working capital, future growth initiatives and potentially a return of capital to shareholders.
The sale follows a strategic review launched after Wellnex received unsolicited approaches for the Pain Away brand earlier this year.
Pain Away generated unaudited revenue of around A$13.4 million and EBITDA of A$4.4 million during the year ended 30 June 2025.
Following completion, Wellnex will retain its liquid soft-gel analgesics and contract manufacturing operations. The company intends to focus on scaling these businesses towards sustainable profitability and positive free cash flow, while also considering selective acquisitions of established consumer healthcare brands.
The disposal remains subject to shareholder approval and other customary conditions. An extraordinary general meeting is scheduled for 8 September 2026, with completion expected shortly afterwards.
Interim Executive Chairman Eric Jiang said, “This transaction represents an important step for Wellnex Life, strengthening the Company’s balance sheet and providing greater financial flexibility. Pain Away has been an important part of the Company’s portfolio and the Board believes the transaction provides a clear route to realise value from the brand while supporting the Company’s strategic priorities. In Mentholatum, the brand passes to a global consumer healthcare group which is well positioned to support its future development”.
