Mesa Labs Acquires Gyros Protein Technologies
October 31 2019 - 8:55PM
Mesa Laboratories, Inc. (NASDAQ:MLAB) (we, us, our, “Mesa” or
the “Company”), a diversified supplier of quality control
instruments and consumables to highly regulated markets today
announced the acquisition of Gyros Protein Technologies Holding AB
(“GPT”). GPT is headquartered in Uppsala, Sweden and is a
leading provider of Immunoassay and Peptide Synthesis solutions
that accelerate the discovery, development and manufacturing of
biotherapeutics. The acquisition deepens our commitment to
biopharmaceutical quality control and will be the core of our new
platform, Biopharmaceutical Development. We acquired GPT from
AP6 (Sixth Swedish National Pension Fund), Ampersand Capital
Partners and various individual shareholders.
The acquisition price for GPT consisted of cash consideration of
$180 million, subject to purchase price adjustments. The
acquisition is expected to add between $37 million to $40 million
of revenues during the first 12 months (of which approximately 55%
is recurring in nature), deliver double digit organic revenues
growth over the next several years and excluding the impact of
purchase accounting, generate gross profit margin percentages in
the mid to high 60’s. Additionally, excluding the
impact of purchase accounting and integration expenses, we expect
adjusted operating income as a percentage of revenues to be in the
mid-teens for the first 12 months. Revenues for the remaining
five months of FY20 are expected to be $13 million-$15
million.
“GPT brings an innovative approach to protein analytics in
biopharmaceutical quality control and process development.
The Gyrolab immunoassay solution is a proven, microfluidic driven
platform that increases repeatability and throughput while
minimizing sample size and manual handling. The company also
provides a leading peptide synthesis platform delivering the
highest quality peptides in particular, for the longer and more
complicated sequences that are of vital interest to many
applications, including that of therapeutic peptides and neoantigen
therapies. We believe that The Mesa Way approach to continuous
improvement will help the GPT team to continue to rapidly scale
both commercially and operationally” said Gary Owens, President and
Chief Executive Officer of Mesa.
Dan Calvo, President of GPT, added “We are proud of the track
record we have improving the processes for developing
biotherapeutics. Superior technology backed by deep customer
intimacy has been the foundation of our success and we felt the
same spirit of innovation at Mesa. We look forward to working
with the Mesa team to expand the applications we deliver and
deepening our level of customer support.”
Jefferies LLC acted as the exclusive financial advisor to
GPT.
For more detail, reference the Mesa Acquisition of GPT
presentation in the Investor Relations section of Mesa’s website at
www.mesalabs.com.
About Mesa Laboratories, Inc.Mesa is a global technology
innovator committed to solving some of the most critical quality
control challenges in the pharmaceutical, healthcare, industrial
safety, environmental and food and beverage industries. Mesa
offers products and services through five divisions (Sterilization
and Disinfection Control, Biopharmaceutical Development,
Instruments, Cold Chain Monitoring and Cold Chain Packaging) to
help our customers ensure product integrity, increase patient and
worker safety, and improve quality of life throughout the
world.
Non-GAAP Financial MeasureIn this release, we refer to non-GAAP
financial measure adjusted operating income (“AOI”) which is
defined to exclude the non-cash impact of amortization of
intangible assets, stock-based compensation expense, and impairment
loss on goodwill and long-lived assets. We are unable to provide a
reconciliation of forward-looking AOI because components of the
calculation are inherently unpredictable and currently unknown.
Forward Looking Statements This press release may contain
information that constitutes "forward-looking statements."
Generally, the words "believe,” “estimate,” “intend,” "expect,"
“project,” “anticipate,” “will" and similar expressions identify
forward-looking statements, which generally are not historical in
nature. However, the absence of these words or similar expressions
does not mean that a statement is not forward-looking. All
statements that address operating performance, events or
developments that we expect or anticipate will occur in the future
— including statements relating to revenues growth and statements
expressing general views about future operating results — are
forward-looking statements. In addition, forward-looking statements
include statements in connection with the ability to successfully
integrate the businesses, risks related to disruption of management
time from ongoing business operations due to the acquisition of
GPT, the risk that any announcements relating to the transaction
could have adverse effects on the market price of Mesa Labs’
securities, the risk of any unexpected costs or expenses resulting
from the transaction, the risk of any litigation relating to the
transaction, the risk that the transaction and its announcement
could have an adverse effect on the ability of Mesa Labs and GPT to
retain customers and retain and hire key personnel and maintain
relationships with their suppliers and customers and on their
operating results and businesses generally, the risk that the
combined company may not operate as effectively and efficiently as
expected, the risk that the combined company may be unable to
achieve synergies or other anticipated benefits of the transaction
or that it may take longer than expected to achieve those synergies
or benefits and other important factors that could cause actual
results to differ materially from those projected.
Management believes that these forward-looking statements are
reasonable as and when made. However, caution should be taken not
to place undue reliance on any such forward-looking statements
because such statements speak only as of the date when made. We
undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law. In addition,
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from our historical experience and present expectations or
projections. These risks and uncertainties include, but are not
limited to, those described in our Annual Report on Form 10-K for
the year ended March 31, 2019, and those described from time to
time in our subsequent reports filed with the Securities and
Exchange Commission. For more information about the Company,
please visit its website at www.mesalabs.com
CONTACT: Gary Owens.; President and CEO, or
John Sakys; CFO, both of Mesa Laboratories, Inc., +1-303-987-8000
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