DGAP-News: STRATEC Biomedical AG / Key word(s): Takeover/Acquisition
STRATEC to acquire hematology system specialist Diatron
Birkenfeld, March 23, 2016
STRATEC Biomedical AG, Birkenfeld, Germany (Frankfurt: SBS; Prime Standard, TecDAX), has entered into an agreement with the global private equity firm The Riverside Company, headquartered in New York and Cleveland governing the full acquisition of Diatron MI PLC, Budapest, Hungary, its US affiliate company and the superordinate holding structure. Diatron designs and manufactures system solutions for hematology applications, as well as related consumables. The transaction is expected to close near the end of this month.
Diatron was founded more than 25 years ago and supplies analyzer systems and complementary products to more than 100 countries, as well as consumables and services for use in human and veterinary diagnostics. Among its customers are well-known life science companies with global operations. In the past financial year, the company generated sales equivalent to around EUR 34 million with profitability comparable to the STRATEC Group's. The acquisition is expected to be accretive to the Groups earnings in 2016. The company has about 200 employees working mainly in development, production and sales at locations in Hungary and the US.
"With Diatron, we are extending our range of products and our customer base in a highly attractive market segment", commented Marcus Wolfinger, Chairman of STRATEC's Board of Management. "By acquiring this highly innovative OEM provider, we are boosting STRATEC's activities in forward-looking areas without altering our business model. To date, STRATEC's core competence has involved designing and manufacturing systems for blood grouping and typing, molecular diagnostics, and immunoassays. These areas will now be supplemented with products and expertise in hematology. With this, we also remain in line with our strategic value of not entering into competition with our customers and partners, whether on the product front or by way of acquisitions."
Dr. Claus Vielsack, the member of STRATEC's Board of Management responsible for product development added: "With Diatron, we are diversifying our range of products and services and gaining access to new customers. At the same time, we will be tapping synergies in our development, supply chain and production activities. Diatron offers impressive proof of the growth potential available in this market segment."
Jim Schepp, CEO of Diatron commented: "We are delighted to take our activities to the next level with STRATEC. The strengths of our two companies will offer tremendous new opportunities for developing and marketing diagnostics solutions to our customers worldwide."
Diatron's OEM portfolio chiefly comprises analyzer systems, system components, consumables and tests in the lower throughput segment for hematology applications. Throughput describes the frequency of tests performed in a specified period. To date, STRATEC has focused on the medium throughput range. Extending its value creation in the field of decentralized laboratory solutions - typically smaller to medium-sized hospitals, group practices, and laboratories - therefore represents a highly complementary addition to STRATEC's expertise and product portfolio.
Diatron's development and production activities in Budapest, Hungary meet all regulatory requirements for all major markets. STRATEC expects to benefit from synergies, particularly in developing and manufacturing consumables, modules for complete analyzer systems, and smaller systems. Diatron's platform-based development approach is similar to STRATEC's, as is its OEM partnership-based market access structure. The systems offered by Diatron are especially suited for countries with highly decentralized healthcare systems, as is often the case in emerging and developing economies.
The parties have agreed to maintain confidentiality concerning the purchase price.
Conference call and audio webcast
To take part in the conference call, please use the following dial-in numbers:
Conference Code: 1604901
Participants are requested to dial in ten minutes before the conference call starts.
The conference call can also be watched as an audio webcast at www.stratec.com/audiowebcast201603 (brief registration required). Please note that no questions can be submitted via audio webcast.
You can also watch and download a slide presentation via audio webcast at www.stratec.com/audiowebcast201603 (brief registration required).
Shares in the company (ISIN: DE000STRA555) are traded in the Prime Standard segment of the Frankfurt Stock Exchange and are listed in the TecDAX select index of the German Stock Exchange.
Further information can be obtained from:
|Company:||STRATEC Biomedical AG|
|Phone:||+49 (0)7082 7916 0|
|Fax:||+49 (0)7082 7916 999|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; Terminbörse EUREX|
|End of News||DGAP News Service|