Charles River Laboratories (NYSE:CRL) reported that it finalized a definitive deal to acquire Celsis International Ltd. for cash consideration of $212 million. The acquisition target firm Celsis is a pioneer firm in the industry of rapid bacterial detection systems. Its products are used for the quality control testing process in the consumer product and biopharmaceutical industries. The systems are chiefly deployed in product-release testing so as to ensure the safe production of consumer products and drugs.
The significance
The acquisition of Celsis complements Charles River EMD position as a pioneer provider firm of rapid endotoxin examination and bacterial detection for BioPharma manufacturing industry. The company will get a most comprehensive system to perform rapid quality control check. The addition of Celsis systems including Innovate™, Advance II™ and Accel™ will complement EMD’s rapid bacterial detection system known as ‘PTS-Micro™.’ It is important for the testing of sterile biopharmaceutical applications.
The combined Celsis and EMD portfolio is projected to enhance increased customer adoption of EMD’s quality control testing systems across both non-sterile and sterile applications. In the industry, the clients are looking for a single provider firm that can fulfill their all rapid product release examination needs.
The expert speaks
James C. Foster, the President, Chairman and Chief Executive of Charles River Laboratories (NYSE:CRL), stated that Celsis acquisition combines pioneer providers of endotoxin and bacterial testing/identification to define EMD as a leading provider of company’s solutions across multiple industries. It almost doubles the market prospects for EMD testing services and products, providing access to the customer products and core biopharmaceutical market.
The acquisition will boost the EMD business, which is Charles River’s highest margin and growth business. It will positively impact non-GAAP earnings in 2015 itself, with a noteworthy contribution in coming years. The acquisition deal of Celsis is expected to end in the third quarter of 2015. As per the anticipated timing of deal closure, the acquisition is expected to yield nearly 1% of company’s FY2015 consolidated revenue.
