Eurofins announces the successful closing of the acquisition of EAG Laboratories
Monday, December 4, 2017
Eurofins Scientific (EUFI.PA), a global leader in bioanalytical testing, announces the successful closing of the transaction to acquire EAG Laboratories (“EAG”), a leading global scientific services company providing analytical testing and consulting solutions to a diverse and demanding set of end markets, from affiliates of Odyssey Investment Partners, as communicated on September 18, 2017.
EAG employs over 1,000 highly educated and talented scientists and support personnel, and expects to generate revenues in excess of US$ 220m in 2017. The agreed acquisition price is US$780m on a cash free debt free basis and the transaction should be immediately margin accretive for Eurofins after closing.
EAG provides Eurofins an entry into the dynamic and growing Materials and Engineering Sciences markets, where EAG is number one in its core markets. This represents an entirely new business line for Eurofins, and provides a platform with significant organic and inorganic growth potential. The company provides highly advanced investigative testing of organic and inorganic materials, serving a wide range of industries including high tech, aerospace, defense, medical device, chemicals and semiconductors. Services include elemental profiling, advanced imaging, materials characterization, metallurgy and failure analysis. EAG differentiates itself with proprietary testing systems, software and processes, market leading capacity and turnaround time, as well as deep technical knowledge and expertise.
EAG is a leading North American provider of advanced chemical testing services for pesticides, industrial and household chemicals. It provides end-to-end support for e-fate, metabolism, eco-toxicology and residue studies required for pesticide and chemical regulatory testing to support global registration requirements. The company has extensive expertise to test molecules with highly complex profiles. EAG’s agroscience business is highly complementary to the existing Eurofins agroscience business in terms of capabilities/capacities and particularly geography, making the combined company the only global solution provider capable of providing a full suite of services for our clients in the Chemical industry to perform required research services for government regulatory approvals in North America, Europe, Asia and Latin America. In the biopharmaceutical testing market, EAG adds a highly desirable asset to the Eurofins BioPharma Product Testing group to strengthen Eurofins’ extensive range of small molecule and biologics testing and characterization services to a broad range of biopharmaceutical customers.
Comment from Dr. Gilles Martin, Eurofins CEO: “We are extremely pleased to welcome EAG and its talented teams to the Eurofins Group. EAG’s competencies, reputation for scientific excellence and footprint further strengthen Eurofins’ global offering in the highly attractive biopharmaceutical and agroscience testing markets, with perfect geographic complementarity. In addition, EAG provides Eurofins with an entirely new business line and growth market in material sciences, where the management has developed a robust plan to grow both organically and via acquisitions. We look forward to strengthening their portfolio and operating footprint by providing access to the full range of services and capabilities of the Eurofins Group.”
Comment from Dr. Siddhartha Kadia, President and CEO of EAG Laboratories: “We are proud to have played a crucial role for our customers in many end-markets throughout our history. During the last 4 years, we have made substantial investments into state-of-the-art lab facilities equipped with the best-in-class instrumentation, key scientific talent and industry-leading commercial resources. We share many attributes of Eurofins’ culture including: Scientific Excellence, Focus on serving our Clients and Growth mindset. We are confident that the business is set for a successful and exciting future under the global reach and scientific expertise of Eurofins.”
For more information, please visit www.eurofins.com or contact:
Phone: +32 2 766 1620
Notes for the editor:
Eurofins – a global leader in bio-analysis
Eurofins Scientific through its subsidiaries (hereinafter sometimes “Eurofins” or “the Group”) believes it is the world leader in food, environment and pharmaceutical products testing and that it is also one of the global independent market leaders in certain testing and laboratory services for agroscience, genomics, discovery pharmacology and for supporting clinical studies. In addition, Eurofins is one of the key emerging players in specialty clinical diagnostic testing in Europe and the USA. With over 30,000 staff in 400 laboratories across 42 countries, Eurofins offers a portfolio of over 150,000 analytical methods for evaluating the safety, identity, composition, authenticity, origin and purity of biological substances and products, as well as for innovative clinical diagnostic. The Group objective is to provide its customers with high-quality services, accurate results on time and expert advice by its highly qualified staff.
Eurofins is committed to pursuing its dynamic growth strategy by expanding both its technology portfolio and its geographic reach. Through R&D and acquisitions, the Group draws on the latest developments in the field of biotechnology and analytical chemistry to offer its clients unique analytical solutions and the most comprehensive range of testing methods.
As one of the most innovative and quality oriented international players in its industry, Eurofins is ideally positioned to support its clients’ increasingly stringent quality and safety standards and the expanding demands of regulatory authorities around the world.
The shares of Eurofins Scientific are listed on the Euronext Paris Stock Exchange (ISIN FR0000038259, Reuters EUFI.PA, Bloomberg ERF FP).
This press release contains forward-looking statements and estimates that involve risks and uncertainties. The forward-looking statements and estimates contained herein represent the judgment of Eurofins Scientific’s management as of the date of this release. These forward-looking statements are not guarantees for future performance, and the forward-looking events discussed in this release may not occur. Eurofins Scientific disclaims any intent or obligation to update any of these forward-looking statements and estimates. All statements and estimates are made based on the information available to the Company’s management as of the date of publication, but no guarantee can be made as to their validity.