Eurofins signs agreement to acquire Lancaster Laboratories, Inc.
Feb. 28, 2011
by World Grain Staff
PARIS, FRANCE — Eurofins Scientific SE announced on Feb. 24 that it has signed a definitive agreement to acquire Lancaster, Pennsylvania, U.S.-based Lancaster Laboratories, Inc. from Thermo Fisher Scientific, Inc., Waltham, Massachussets, U.S., for approximately $200 million, subject to post-closing adjustments.
With approximately 1,100 employees in the U.S. and Ireland, Lancaster is a leading provider of pharmaceutical product-testing services and GMP Quality Control (QC) in North America. In addition, it operates one of the leading environmental testing laboratories in the U.S. Lancaster has been growing rapidly over the last 50 years and generated sales of approximately $115 million in 2010. Lancaster operates the largest single-site independent pharmaceutical product testing laboratory in the world.
With this bolt on acquisition, the Eurofins Group becomes the global leader in this very stable and recurring business and significantly enlarges its North American footprint. It is a further expression of Eurofins’ commitment to serve the pharmaceutical and biotechnology industries with laboratory services of the highest quality and reliability. The Eurofins Group said the acquisition reinforces its leadership in terms of scale and quality of service on a wide range of laboratory activities for the pharmaceutical and biopharmaceutical industries in North America, Europe and Asia.
The Eurofins Group noted that Lancaster is also one of the oldest, largest and most reputable environmental testing laboratories in the U.S., and it has a solid reputation for excellence in service quality and reliability and enjoys long standing relationships with many Fortune 500 clients. The company said Lancaster’s strong position and reputation for top quality service in environmental testing in the U.S. fits well with Eurofins’ strategy of being a global market leader with a focus on providing high quality services to large global corporations.
The Eurofins Group said that completion of the transaction is expected in the next two to three months and is subject to applicable regulatory approvals and customary closing conditions. Implied EV/EBITDA multiple is in-line with levels previously communicated for transactions of this size and Eurofins’ value-creation objectives. Given that Lancaster is already a single-site laboratory in the U.S., no site consolidations or restructuring costs are foreseen as a result of this acquisition.