Brooklyn Park-Based Mocon Buys Denmark Co. for $20M
Brooklyn Park-based Mocon, Inc., said Monday that it has signed a deal to acquire PBI-Dansensor for $20 million.
PBI-Dansensor is a Denmark-based manufacturer of instruments for the “modified atmosphere packaging” of foods, beverages, pharmaceuticals, and other perishable items. The process extends the shelf life of products by reducing the effects of oxidation, microbial growth, and changes in color, taste, flavor, and aroma without the use of artificial preservatives. PBI-Dansensor's products include gas mixers, analyzers, and leak-detection equipment.
Mocon provides instruments and consulting services to research laboratories, production facilities, and quality control and safety departments in the medical, pharmaceutical, and food and beverage industries, among others. It also makes equipment for the packaging industry and said the acquisition will complement its existing product portfolio.
Two-thirds of the purchase price will be paid in cash at closing, and the remainder will be paid over the course of four years. Mocon expects the deal to be “slightly dilutive” to its 2012 earnings but accretive to earnings in the years that follow.
Mocon Chairman, President, and CEO Robert Demorest said in a statement that Mocon will benefit from PBI-Dansensor's international distribution channels. The deal will boost Mocon's annual revenue to $56.7 million, Demorest said.