Eurofins to expand its presence in North America with the acquisition of EAG Laboratories
September 18 2017 - 12:01PM
Business Wire
Regulatory News:
Eurofins (Paris:ERF):
Eurofins Scientific (EUFI.PA), a global leader in bioanalytical
testing, announces that it has signed an agreement 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 Odyssey Investment Partners.
The transaction is expected to close in the next few months,
subject to the fulfillment of customary closing conditions.
EAG is headquartered in San Diego and has 21 laboratories in 18
locations worldwide, serving approximately 4000 customers with
revenue generated from more than 50 countries. It believes it is
the largest independent US-centric platform in the testing,
inspection and certification (TIC) market, and is a highly
differentiated player in high-science analytical testing and
consulting solutions. EAG serves three main markets, namely
Material and Engineering Sciences, Agroscience and
Biopharmaceuticals. The company has grown significantly over its
40-year history, both organically and through acquisitions.
Today EAG employs over 1000 highly educated and talented
scientists and support personnel, and expects to generate revenues
in excess of US$ 220m in 2017, with an EBITDA margin close to 30%.
The agreed acquisition price is US$780m on a cash free debt free
basis. As Eurofins and EAG have almost no geographic overlap, no
site consolidations or restructuring costs are foreseen as a result
of this acquisition. Synergetic top line market effects are
expected in Agroscience and Biopharmaceuticals products testing
based on cross selling to each organization’s clients in the other
company’s geographic base. Based on EAG’s historic and projected
profitability, 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 also a leading North American provider of advanced
chemical testing services for pesticides, industrial and household
chemicals, an area where Eurofins had little presence so far in the
USA. 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.
In the biopharmaceutical testing market, EAG adds a highly
desirable asset to the Eurofins BioPharma Product Testing group in
a geographic area of the USA where Eurofins had no presence so far.
EAG’s laboratory in Missouri provides an extensive range of small
molecule and biologics testing and characterization services to a
broad range of biopharmaceutical customers. The company provides
advanced testing and scientific support services from a
well-equipped and state-of-the-art facility. EAG supports
biopharmaceutical, generic and biosimilar customers from the
research and development phase through to commercialization.
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. We look forward to
strengthening their portfolio and operating footprint by providing
access to the full range of services and capabilities of the
Group.”
For more information, please visit
www.eurofins.com
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 375 laboratories across 41 countries, Eurofins offers a
portfolio of over 130,000 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).
Important disclaimer:
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.
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