Private equity firm Bain Capital has bought a majority stake in the Government-owned blood products company Plasma Resources UK.
Bain Capital is understood to be buying an 80% stake in the company, with the Government - which announced plans to sell it in January - keeping the rest.
In a written ministerial statement, Health Minister Dr Dan Poulter said: "We are taking this action to support the company and its employees in the next phase of the company's development."
He continued: "We have carefully examined the strategic options that will best allow the company (which includes the UK based fractionation facility Bio Products Laboratory Limited (BPL) and the US-based plasma supply company, DCI Biologicals Inc) to grow and be successful in an established and highly competitive global industry.
"It should fulfil its potential as part of the strategically important bioscience sector of the UK economy. Our conclusion is that this route will best meet those requirements."
My thoughts are a little different. Why are we selling a profitable company with growth potential to an American company when we the British public could keep it and the growing profits?
If the company is profitable and needed some finance to grow then the government could have provided it, seems we have bottomless pockets for war but not for investing in our future, this is nothing more than allowing a private company to cherry pick the UK's assets and all elected members of parliament that had anything to do with this should hang their heads in shame.
This is just another example of the way that the UK is destroying its long term sustainability by selling off valuable assets that are set to become even more valuable. This sale is the exact opposite of what needs to happen.
What this country needs is a parliament that is committed to creating value that can be exported not selling value that then needs to be imported.
Privatisation in general achieves no long term benefit for the sellers i.e. the public coffers and or the public lose out one way or another as privatization only happens when the assets are bought cheaply.
All our contentious privatizations did not need to happen as they all could have been rationalized and modernized and now be putting cash into the government coffers.
There seems to be an automaton/simpleton like response from many people parroting that you have to privatize something to make it more efficient or to make the business grow.
This is simply not true. If a public company is failing or cannot grow then find out why, fix the faults and if the management can't do it then change them. Its not a hard theory to follow.
The reality is the people involved in buying and selling our companies know this, these sales happen because they make easy money.
It all comes down to the fact that privatization is for the benefit of one dimensional thinkers who are incapable of creating real wealth themselves and who are being allowed by another equally one dimensional bunch of politicians to help themselves to this countries assets on the cheap.
This is one of the root causes why the UK has failed to succeed.
While the associates of the policy makers are making easy money without creating any real wealth, the policy makers are supported and will not place enough or any emphasis on creating real wealth for the UK that can either be exported or that can replace imports and thus reduce imports.
Expect this to continue until we have a democratic system in place to stop this asset stripping and a cohesive transparent plan and system to allow the UK's workers and captains of industry to efficiently create real value.
Until then expect more nails in the coffin.