- Signs Agreement to Acquire Majority Ownership of Vital River -
WILMINGTON, Mass.--(BUSINESS WIRE)--Oct. 30, 2012--
Charles River Laboratories International, Inc. (NYSE:CRL) announced
today that it has entered into an agreement to acquire 75% ownership of
Vital River, the premier commercial provider of research models and
related services in China. Through this acquisition, Charles River will
provide high-quality research models and associated services to the
emerging China market for drug discovery and development. The
acquisition is expected to close in the first quarter of 2013, subject
to customary closing conditions, including Chinese regulatory approvals.
James C. Foster, Chairman, President, and Chief Executive Officer of
Charles River Laboratories, commented, “We expect demand for research
models in China to significantly increase over the next several years as
drug development initiatives in academia, government and
biopharmaceutical companies expand. Through our acquisition of Vital
River, Charles River intends to set the standards for research models in
China, the third-largest pharmaceutical market in the world, and play a
leading role in this emerging opportunity.”
For the last ten years, Vital River has been a licensee for production
and distribution of Charles River research models in China, with sites
which reflect Charles River facility design.
Charles River expects to acquire the 75% ownership of Vital River for
approximately $27 million, subject to certain closing adjustments. The
transaction is expected to add more than 1% to 2013 total net sales on a
full-year basis and be slightly accretive to 2013 earnings per share.
When the acquisition is completed, Vital River will be majority owned
and controlled by Charles River. The agreement provides an option for
Charles River to acquire the remaining 25% of Vital River at a later
date.
Caution Concerning Forward-Looking Statements
This news release includes forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as “anticipate,”
“believe,” “expect,” “will,” “may,” “estimate,” “plan,” “outlook,” and
“project” and other similar expressions that predict or indicate future
events or trends or that are not statements of historical matters.
Forward-looking statements include statements in this press release
regarding the acquisition of the majority interest in Vital River or any
acquisition of additional interest, expectations regarding the eventual
closing of the acquisition, and Charles River’s expectations with
respect to the impact of Vital River on the Company, its service
offerings, net sales and earnings, as well as Charles River’s future
growth in the area of research models and services in China.
Forward-looking statements are based on Charles River’s current
expectations and beliefs, and involve a number of risks and
uncertainties that are difficult to predict and that could cause actual
results to differ materially from those stated or implied by the
forward-looking statements. Those risks and uncertainties include, but
are not limited to, the ability to successfully consummate the
acquisition of Vital River. A further description of these risks,
uncertainties, and other matters can be found in the Risk Factors
detailed in Charles River's Annual Report on Form 10-K as filed on
February 27, 2012, as well as other filings we make with the Securities
and Exchange Commission. Because forward-looking statements involve
risks and uncertainties, actual results and events may differ materially
from results and events currently expected by Charles River, and Charles
River assumes no obligation and expressly disclaims any duty to update
information contained in this news release except as required by law.
About Charles River Laboratories
Accelerating Drug Development. Exactly. Charles River provides essential
products and services to help pharmaceutical and biotechnology
companies, government agencies and leading academic institutions around
the globe accelerate their research and drug development efforts. Our
dedicated employees are focused on providing clients with exactly what
they need to improve and expedite the discovery, early-stage development
and safe manufacture of new therapies for the patients who need them. To
learn more about our unique portfolio and breadth of services, visit www.criver.com
Source: Charles River Laboratories International, Inc.
Charles River Laboratories
Investors:
Susan E. Hardy,
781-222-6190
Corporate Vice President, Investor Relations
susan.hardy@crl.com
or
Media:
Amy
Cianciaruso, 781-222-6168
Director, Public Relations
amy.cianciaruso@crl.com