Techne To Buy Device Manufacturer For $104M
Minneapolis-based biotechnology products manufacturer Techne Corporation announced Tuesday that it has reached an agreement to acquire in vitro diagnostic (IVD) device manufacturer Bionostics Holdings Limited and its operating subsidiary, Bionostics, Inc., for $104 million in cash.
Following the acquisition, which is expected to close in the fall, Techne said Bionostics will combine with Techne's “hematology” division to operate under a new “clinical controls” division of Techne’s subsidiary Research and Diagnostic Systems, Inc. (R&D Systems).
“The addition of Bionostics adds capabilities in exciting new areas like coagulation and expands our controls portfolio, giving us the critical mass we need to remain competitive and offer our customers continued value and options to serve their needs,” Techne President and CEO Charles Kummeth said in a statement.
Techne manufactures biotechnology products that are used in life sciences research. For the fiscal year that ended June 30, 2012, the publicly traded manufacturer reported $314.5 million in revenue—an 8.5 percent year-over-year increase.
Net income for Techne’s fiscal 2013 third quarter, which ended in March, totaled $32.5 million, or 88 cents per share (a decrease of 3.2 percent from the same quarter last year.) Revenue for the quarter totaled $80.9 million, down 3.2 percent from a year earlier. Techne employs approximately 850 people, including 691 Twin Cities-based employees, and operates out of Minneapolis and Abingdon, England.
Bionostics, which is based in Devens, Massachusetts, specializes in device-specific medical products for health care labs, including controls for blood glucose and blood gas devices. The manufacturer generated approximately $29.3 million in revenue for its fiscal year that ended August 31, 2012. Bionostics’ employees and management team will continue to operate out of the Massachusetts offices, according to a statement Techne released Tuesday.
The acquisition is subject to customary closing conditions but is not subject to any financing contingencies. The $104 million purchase price may be adjusted based on Bionostics’ level of working capital when the deal closes, Techne said.
Techne is among Minnesota’s 50-largest public companies based on revenue. In March, the company appointed Kummeth as CEO.