Sartorius Concludes Agreement to Acquire the Liquid Handling Business of the Finnish Laboratory Supplier Biohit
- Sales and purchase agreement signed for 68 million euros
- Significant expansion of the Sartorius product portfolio
- Added sales of approx. 40 million euros with lab customers
- Deal set to be closed in December 2011
Sartorius , a leading international process and laboratory technology provider, today signed an agreement to acquire the liquid handling business of the Finnish laboratory supplier Biohit Oyj. With its liquid handling segment, Biohit is one of the global market leaders for mechanical and electronic pipettes, as well as for the associated consumables. The segment, which employs some 400 people, generated net sales of approximately 38 million euros and an EBITDA margin of approx. 13% in fiscal 2010. Its major customers are research, quality assurance and academic laboratories as well as hospitals. This deal will enable Sartorius to expand its product portfolio with an important component in the area of laboratory instruments, which currently includes lab balances, lab water purification systems, moisture analyzers and sample preparation consumables.
"Pipettes are the ideal addition to our laboratory product offering," commented Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius AG. "Just like our balances, they are among the most frequently used lab instruments with especially high customer requirements regarding their precision, reliability, safety and service support. Biohit is one of the leading suppliers in this field, known worldwide for innovative solutions and high quality. With this acquisition, we will substantially strengthen our strategic positioning with our customers and move significantly toward our goal of serving as a broad-based supplier of high-quality laboratory instruments and consumables supported by excellent service."
Welcoming the acquisition, Professor Osmo Suovaniemi, the founder as well as the Chairman of the Board of Biohit Oyj, said, "We are really happy to have found a buyer in Sartorius whose strategic objective is an excellent fit with our liquid handling business and who will continue to further develop it on a global basis. Access to the strong global market presence and customer base of Sartorius will provide excellent prospects for growth."
Subject to the acquisition are all assets of the liquid handling segment of Biohit Oyj, including its production facilities in Finland and China , as well as its sales subsidiaries in eight countries. The acquisition, which will be carried out through the Sartorius Lab Holding GmbH, will be financed from an existing credit facility, and is projected to be accretive to relevant net profit* for the Sartorius Group already in 2012. This deal, which is subject to customary closing conditions and the approval of the General Meeting of Biohit, is expected to close in December 2011.
* Relevant net profit = Earnings yielded by adjusting for extraordinary items, eliminating non-cash amortization and by taking non-controlling interest as well as tax effects into account
This press release contains statements about the future development of the Sartorius Group. The content of these statements cannot be guaranteed as they are based on assumptions and estimates that harbor certain risks and uncertainties.
This is a translation of the original German-language press release. Sartorius shall not assume any liability for the correctness of this translation. The original German press release is the legally binding version. Furthermore, Sartorius reserves the right not to be responsible for the topicality, correctness, completeness or quality of the information provided. Liability claims regarding damage caused by the use of any information provided, including any kind of information which is incomplete or incorrect, will therefore be rejected.
Conference Call and Webcast
Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of the Sartorius Group, will discuss the transaction with analysts and investors on Thursday, October 27, 2011, at 3:00 p.m. CET in a webcast teleconference. You may dial into the teleconference starting at 2:45 CET at the following numbers:
Germany +49 (69) 222210632
France +33 (1) 70480163
UK +44 (20) 76600009
USA +1 (646) 2543371
The dial-in code is as follows: 7741122
The webcast and presentation can be viewed at www.sartorius.com.
A Profile of Biohit
Biohit Oyj develops, manufactures and markets liquid handling products and diagnostic test systems for use in research, health care and industrial laboratories. Liquid handling products include electronic and mechanical pipettes and dispensers, and disposable tips, as well as pipette maintenance and calibration services. Diagnostics business comprises products and analysis systems for diagnosing, screening and prevention of gastrointestinal diseases. Biohit Group employs around 440 people. The company is headquartered in Finland, with subsidiaries in France, Germany, the UK, Russia, India, China, Japan and the USA, and a representative office in Singapore . Additionally, Biohit's products are sold by approximately 200 distributors in 70 countries. Biohit's share (BIOBV) is quoted on NASDAQ OMX Helsinki.
The Sartorius Group is a leading international laboratory and process technology provider covering the segments of biotechnology and mechatronics. In 2010, the technology group earned sales revenue of 659.3 million euros. Founded in 1870, the Goettingen-based company currently employs more than 4,500 persons. The major areas of activity in its biotechnology segment focus on filtration, fluid management, fermentation and cell cultivation, purification and laboratory applications. In the mechatronics segment, the company primarily manufactures equipment and systems featuring weighing, measurement and automation technology for laboratory and industrial applications. Key Sartorius customers are from the pharmaceutical, chemical and food industries and from numerous research and educational institutes of the public sector. Sartorius has its own production facilities in Europe, Asia and America as well as sales subsidiaries and local commercial agencies in more than 110 countries.