HGBL Stock: Over 20% Increase Explanation

By Amit Chowdhry ● Aug 25, 2021
  • The stock price of Heritage Global Inc. (NASDAQ: HGBL) increased over 20% during intraday trading today. This is why it happened.

The stock price of Heritage Global Inc. (NASDAQ: HGBL) increased over 20% during intraday trading today. Investors are responding positively to news from a couple of days ago.

Heritage Global Partners (a worldwide leader in asset advisory and auction services) and a subsidiary of Heritage Global Inc. (Nasdaq: HGBL) announced that it has (through an affiliate) acquired substantially all of the assets of American Laboratory Trading (ALT) — one of the largest suppliers of premium refurbished lab equipment in North America and a key provider of surplus asset services for the life sciences. Plus HGP also acquired the building and property at 12 Colton Road in East Lyme, Connecticut that ALT currently occupies. 

ALT’s HQ and operations will remain in East Lyme under the continued leadership of ALT president Jayson Bernstein. The acquisition enhances HGP’s position and reach in the biotech sector as well as its footprint in New England and the Boston biotech community.

Based in East Lyme, Connecticut for over 20 years, ALT purchases, refurbishes, and resells biotech and pharmaceutical laboratory equipment and currently has more than 6,000 instruments in stock. And ALT is the preferred provider of refurbished lab equipment and surplus asset services for BIO, the largest advocacy organization serving the biotech industry, and also a value-added reseller (VAR) for Agilent Technologies – one of the largest manufacturers of life sciences equipment and supplies.

KEY QUOTES:

“We remain committed to steadily growing our company and enhancing shareholder value. The acquisition of ALT further strengthens our service offering in the biotech and pharma sectors which have been our most important vertical on the industrial side of our business over the past decade. We believe this bolt-on acquisition positions us to be the dominant leader in these sectors for years to come and should have an immediate impact to our bottom line. We are pleased to welcome ALT and their talented team into the Heritage Global family of companies.”

— Ross Dove, CEO of Heritage Global

“ALT has been a leader in acquiring and reselling biotech assets for more than two decades and I am confident that their experience, capabilities, and client base will prove to be key growth factors for HGP. Over the last few years, we have worked for, and partnered with ALT on over 20 engagements. Having successfully test-driven the partnership, we expect a seamless integration of ALT into the Industrial Assets division of Heritage Global Inc. and look forward to continuing to build upon our successful partnership.”

— Nick Dove, President of Heritage Global Partners

“Joining the Heritage family means that we can deliver a broader scope of options and better results for our clients to help them maximize their ROI on their surplus or idle assets. With better access to capital, the strength of one of the world’s largest auction companies, and access to Heritage Global’s leadership team, we are well positioned to organically grow our resale business while simultaneously delivering auction opportunities to HGP.”

— Jayson Bernstein, President of ALT

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.