Brooks Automation Acquires Life Sciences Consumables Provider 4titude, Ltd. and Secures $200 Million Term Loan
October 05 2017 - 4:01PM
Brooks Automation, Inc. (Nasdaq:BRKS) announced today that it has
acquired 4titude, Ltd., a manufacturer of scientific consumables
for biological sample materials used in a variety of genomic and
DNA analytical applications. Based in Surrey, England,
4titude sells its products into more than 50 countries
worldwide. The total purchase price of the acquisition was
approximately $65 million in cash, subject to customary working
capital and other adjustments.
Founded 12 years ago by industry veterans, 4titude is widely
recognized for its innovative PCR plates which are used to
"amplify" or copy small segments of DNA, a significant factor in
accelerating research. The company also manufactures a range
of sealing and sequencing tubes related to bench top
instrumentation. 4titude supplies consumable PCR plates to
more than 1200 global customers in the pharma, biotech, academic,
and biobanking markets.
“4titude is a natural addition to Brooks Life Science
offerings,” commented Dusty Tenney, president of Brooks Life
Sciences. “As our services have expanded into supporting the
genomic analysis process for many of our storage customers, we now
have a premier consumables offering that gives our customers
the sample quality and integrity they require in this high
growth application space.”
Co-founders of 4titude, Peter Collins and Thomas Lernbecher,
reflected on joining Brooks, “Our offerings and the Brooks
comprehensive service platform will definitely benefit each
other. It is clear that both companies share a passion for
the commitment to innovation and high integrity solutions for
biological sample management.”
Over the last two years, 4titude has delivered more than 20%
annual growth and generated approximately $14 million of revenue in
the last 12 months. Management expects the acquisition will
be accretive to Brooks’ non-GAAP earnings within the first quarter
of ownership.
Brooks Automation also announced that, concurrent with this
acquisition, the company has secured a seven year senior term loan
agreement with a group of institutional lenders, including Morgan
Stanley Senior Funding, Inc. as Administrative Agent. The
agreement immediately funds $200 million onto Brooks’ balance
sheet, ensuring liquidity and financing for future
acquisitions. Terms of the debt instrument include an
interest rate of LIBOR plus 250 bps, 1% amortization per year, no
financial covenants, flexibility to repay the loan, and the
opportunity to increase it under certain conditions.
About Brooks Automation, Inc.
Brooks is a leading worldwide provider of automation and
cryogenic solutions for multiple markets including semiconductor
manufacturing and life sciences. Brooks’ technologies, engineering
competencies and global service capabilities provide customers
speed to market and ensure high uptime and rapid response, which
equate to superior value in their mission-critical controlled
environments. Since 1978, Brooks has been a leading partner
to the global semiconductor manufacturing market. Since 2011,
Brooks has applied its automation and cryogenics expertise to meet
the sample storage needs of customers in the life sciences
industry. Brooks’ life sciences offerings include a broad
range of products and services for on-site infrastructure for
sample management in temperatures of -20°C to -150°C, as well as
comprehensive outsource service solutions across the complete life
cycle of biological samples including collection, transportation,
processing, storage, protection, retrieval and disposal.
Brooks is headquartered in Chelmsford, MA, with direct operations
in North America, Europe and Asia. For more information, visit
www.brooks.com.
“Safe Harbor Statement” under Section 21E of the
Securities Exchange Act of 1934
Some statements in this release are forward-looking statements
made under Section 21E of the Securities Exchange Act of 1934.
These statements are neither promises nor guarantees but involve
risks and uncertainties, both known and unknown, that could cause
Brooks' financial and business results to differ materially from
our expectations. They are based on the facts known to management
at the time they are made. These forward-looking statements
include, but are not limited to statements about the anticipated
benefits of the acquisition of 4titude, the expected future
capabilities of the combined companies, and the use of proceeds of
the senior term loan. Factors that could cause results to differ
from our expectations include the following: potential difficulties
with the integration of the 4titude business into Brooks Life
Science Systems and potential adverse reactions or changes to
business relationships resulting from Brooks’ ownership of the
4titude business. In addition, actual results are subject to
other risks that relate more broadly to Brooks’ overall business,
including those that we have described in our filings with the
Securities and Exchange Commission, including but not limited to
our Annual Report on Form 10-K, current reports on Form 8-K and our
quarterly reports on Form 10-Q. As a result we can provide no
assurance that our future results will not be materially different
from those projected. Brooks expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
such statement to reflect any change in our expectations or any
change in events, conditions or circumstances on which any such
statement is based. Brooks undertakes no obligation to update the
information contained in this press release.
CONTACTS: Lynne Yassemedis Brooks Automation 978.262.2400
lynne.yassemedis@brooks.com
John Mills Senior Managing Director ICR, LLC
646.277.1254john.mills@icrinc.com
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