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WILMINGTON, Mass., Jun 10, 2002 (BW HealthWire) -- Charles River Laboratories International, Inc. (NYSE:CRL) today announced that it has acquired privately-held Biological Laboratories Europe Ltd. ("BioLabs"), a leading drug discovery and development services company located in Western Ireland. BioLabs provides a broad range of services supporting the discovery, development and manufacturing of pharmaceuticals, medical devices and animal and human health products.
BioLabs' revenues have grown at a compounded rate of 25% over the last three years, as the demand for scientific support services has increased from large multinational pharmaceutical and device companies with a research or manufacturing presence in Ireland. Economic incentives and a strong workforce in Ireland have led a number of multinational pharmaceutical, animal health and medical device companies to establish research and manufacturing operations in the country. BioLabs is strongly positioned to serve the growing outsourcing needs of Irish-based multinationals, as well as companies located elsewhere in the EU and US, that develop and manufacture products for the human and animal health markets. BioLabs' strengths include the development and conduct of bioassays under stringent regulatory conditions that test for the safety of toxins, hormones and other biologics used in medical treatments. BioLabs also recently completed a new facility to support the testing of new medical devices. Charles River has identified numerous synergies that are expected to lead to accelerated growth and expansion of BioLabs' operations in the coming years.
BioLabs' revenues for the fiscal year ended January 31, 2002 were approximately 10 million Euros, with a net (after-tax) profit margin in excess of 20%. The base purchase price for all of the shares of BioLabs was 25 million Euros, paid by Charles River from cash on hand. Management expects the transaction will be modestly accretive to EPS in 2002, and increasingly accretive thereafter.
Charles River's Chairman and CEO, James C. Foster, commented: "This is a terrific accretive strategic acquisition for us. We're very excited about BioLabs' potential for long-term, sustainable growth, and we see a great deal of synergies going forward. BioLabs is a rapidly growing, well managed and scientifically strong company that fits very closely with our existing portfolio of biomedical products and services, while adding new capabilities servicing the large and growing global animal health and medical device industries. We see a number of opportunities for further growth in our services activities in the EU, and this acquisition will allow us to use an economically attractive Irish base for certain of our operations. This is precisely the type of "platform" acquisition that has driven the growth and expansion of our services sector. This transaction, which followed several months of due diligence, is well timed for us, and will allow us to undertake the disciplined integration effort that led to the success of our strategic acquisitions last year. We believe that BioLabs will serve as yet another growth platform for us, as we continue to strengthen and expand our services capabilities, globally."
BioLabs was advised by BioCorp Securities, the corporate finance division of Technomark Consulting Services, in relation to the transaction.
Charles River Laboratories, based in Wilmington, Massachusetts, is a leading provider of critical research tools and integrated support services that enable innovative and efficient drug discovery and development. The Company is the global leader in providing the animal research models required in research and development for new drugs, devices and therapies. The Company also offers a broad and growing portfolio of biomedical products and services that enable customers to reduce cost, increase speed, and enhance productivity and effectiveness in drug discovery and development. Charles River's customer base spans over 50 countries, and includes all of the major pharmaceutical and biotechnology companies, as well as many leading hospitals and academic institutions. The Company operates 76 facilities in 15 countries worldwide.
Caution Concerning Forward-Looking Statements: This document includes certain "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations, and involve a number of risks and uncertainties that could cause actual results to differ materially from those stated or implied by the forward looking statements, including acquisition integration risks, special interest groups, contaminations, industry trends, new displacement technologies, outsourcing trends, USDA and FDA regulation, changes in law, continued availability of products and supplies, personnel and control, and others that are described in more detail in the Risk Factors contained in the Company's most recent SEC filings. The Company disclaims any intent or obligation to update forward looking statements, and otherwise claims the safe harbor protections for forward looking statements afforded under The Private Securities Litigation Reform Act of 1995.
CONTACT: Charles River Laboratories International, Inc. Dennis R. Shaughnessy, 978-658-6000 ext.1207 firstname.lastname@example.org