Eurofins announces successful closing of Lancaster acquisition

06-Apr-2011 - USA

Eurofins Scientific SE announced the successful closing of the transaction to acquire 100% of Lancaster Laboratories, Inc. (Lancaster, PA, USA), following thorough review and consequent approval from all relevant regulatory bodies.

Eurofins signed an agreement to acquire Lancaster from Thermo Fisher Scientific Inc. for US$ 200m in cash. Eurofins assumes no debt from the acquisition of Lancaster. Implied EV/EBITDA multiple of the transaction is in-line with levels previously communicated for transactions of this size and Eurofins’ value-creation objectives. Furthermore, no site consolidations or restructuring costs are foreseen as a result of this acquisition.

For the full year 2010, Lancaster generated revenues of US$ 115m, which implies 2010 proforma revenues for the combined group of close to US$ 1.1bn1, with the food and pharmaceutical testing businesses each generating roughly 40%, and the remainder from environmental testing activities.

Comment from Dr. Gilles Martin, Eurofins CEO: “I am extremely pleased that Lancaster has now officially joined the Eurofins global network of laboratories. As the leading provider of pharmaceutical product testing services and cGMP Quality Control (QC) in North America, Lancaster enables Eurofins to establish itself as the global reference in this stable pharmaceutical services segment. Moreover, as one of the leading providers of environmental testing services in the USA, and especially among Fortune 500 clients, Lancaster strengthens Eurofins’ franchise in providing high quality services to large global corporations. This bolt on acquisition reinforces the Group’s leadership in terms of scale and quality of service on a wide range of laboratory activities worldwide.”

https://www.analytica-world.com/en/news/131766/eurofins-announces-successful-closing-of-lancaster-acquisition.html