Techne to Acquire Diagnostics Firm for $104 Million

Medical device maker Techne (NASDAQ: TECH  ) announced today that it's taking a 100% ownership stake in Bionostics Holdings for $104 million cash.

Headquartered in Devens, Mass., Bionostics makes proprietary quality control devices for diagnostic testing equipment and has strategic supply relationships with virtually all global in vitro diagnostic-device OEMs. Controls for blood glucose and blood gas devices are the largest portion of Bionostics' business, which generated approximately $29.3 million in revenues for fiscal year 2012 that ended last Aug. 31.

Techne President and CEO Charles R. Kummeth said: "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."

The acquisition is expected to be slightly accretive to Techne's fiscal year 2014 net earnings, even though there will be acquisition accounting charges related to the step-up in basis for acquired inventories and the amortization of intangibles. Since there are possible adjustments to the final price paid based on working capital available at the closing of the transaction, Techne said it couldn't assess the final impact the deal will have on its first-quarter earnings per share or those for the entire fiscal year.

Bionostics Chief Executive Officer Michael H. Thomas will continue to serve Bionostics in a consulting capacity for a transition period following the closing, though terms of the contract weren't disclosed.

Brown Gibbons Lang & Company initiated the transaction and acted as the exclusive financial advisor to Bionostics.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2496954, ~/Articles/ArticleHandler.aspx, 10/23/2014 3:17:50 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement