Techne Buys Tocris for $124M; Q3 Profits Down 4%
Minneapolis-based Techne Corporation on Tuesday announced that it bought United Kingdom-based Tocris Holdings Limited and its subsidiaries for $124 million in cash.
Techne and its subsidiaries-R&D Systems, Inc., and R&D Systems Europe, Ltd.-develop, manufacture, and distribute biological products. Tocris, meanwhile, is a supplier of chemicals for the life science industry. Techne said that the acquisition of Tocris will expand its portfolio and provide new tools that can be used to develop new biological processes.
According to Techne, Tocris reported about $18.2 million in revenue in 2010. Techne expects the transaction to be accretive to its fourth-quarter sales by about $3.5 million but “slightly dilutive” to the quarter's earnings, as well as those in 2012.
Tom Oland, president and CEO of Techne, said in a statement that Tocris has a similar business model to R&D Systems. “Its strong market position has been earned through the development of a well-respected brand, a diverse and high-quality product line, an innovative product development pipeline, and excellent service,” he said.
The company on Tuesday also announced that its net earnings for the third quarter that ended on March 31 totaled $31.1 million, or 84 cents per share-down 4.1 percent compared to the same quarter of 2010. Analysts polled by Thomson Reuters on average expected earnings of 80 cents per share.
Revenue for the third quarter totaled $76.3 million, representing an 8.5 percent jump from the same period in 2010.
Techne is among Minnesota's 60-largest public companies based on its revenue, which totaled $269 million in 2010.