Meridian Bioscience, Inc., Cincinnati, Ohio (NASDAQ: VIVO) announces that effective today it will have completed the purchase of all the outstanding capital stock of the Bioline group of companies consisting of Bioline Ltd (UK), Bioline GmbH (Germany), Bioline (Aust) Pty Ltd (Australia), Bioline Reagents Ltd, and Bioline USA, Inc for $23.3 million in cash on hand.
Bioline, headquartered in London, is a leading manufacturer and distributor of molecular biology reagents with operations in Germany, Australia, and the United States. The Bioline management team will remain in place and continue to operate the Bioline group of companies. Bioline manufactures and distributes highly specialized molecular biology reagents for the life science research, biotech, pharmaceutical, and commercial diagnostic markets. The Company is a high-quality, large-volume producer of nucleotides, DNA polymerase enzymes, and other core reagents for molecular biology which are the critical components used in PCR testing for DNA, RNA, and other genomic testing. Annual revenues in 2010 are expected to exceed $12 million and have been growing rapidly. The Company is profitable and the acquisition is expected to be accretive to Meridian's earnings in late fiscal 2011 after preacquisition inventory is sold through.
This acquisition adds important technologies and capabilities to Meridian's Life Science business and it will complement Meridian's expanding life science product lines sold into the research, pharmaceutical, and commercial diagnostic markets. In addition to its technological capabilities, the acquired business adds proprietary know-how in the production of high-volume nucleotides and PCR enzymes as well as a growing portfolio of intellectual property in the form of patents and licenses. Through the acquisition and internal development of advanced enabling technologies, Meridian continues to expand its life science business to support and service researchers, diagnostic test manufacturers, as well as pharmaceutical and biotechnology companies.
Richard L. Eberly, Executive Vice President and President, Meridian Life Science, Inc., commented, "We are excited about the addition of the Bioline group of companies to the Meridian Life Science business because of its strategic role in expanding and leveraging our current enabling technologies for the emerging life science markets. Bioline will provide a rapidly expanding portfolio of highly specialized molecular biology reagents that enable the development of genomic tests utilized by researchers, clinical diagnostic laboratories, diagnostic test manufacturers, and biotechnology companies. Bioline will also add key global operations and direct sales capabilities in the U.K., Germany, and Australia to complement Meridian's strong U.S. capabilities. We are enthusiastic about the strategic fit as it relates to Meridian's goals of advancing its life science business through both organic growth and acquisitions. We welcome each Bioline employee and anticipate a smooth integration of Bioline into the Meridian business structure."
Jack Kraeutler, Chief Executive Officer, stated, "Meridian Bioscience is committed to strategies that support the rapidly growing demand for molecular testing from research centers, diagnostic manufacturers and clinical laboratories. Bioline is an ideal acquisition that augments our Meridian Life Science business with additional products and services and, greater global coverage. Further, we are impressed by the scientific capabilities of Bioline as well as its well-deserved reputation for innovation and quality. As we have indicated recently, it is our intention to continue to seek acquisitions and alliances that make sense for the Meridian customer and shareholder. Excluding transaction costs, we expect that this acquisition will be accretive in fiscal 2011. We welcome the Bioline team and look forward to growing our business together."
Marco Calzavara, Founder and Chief Executive Officer of Bioline, stated, "Our objective for the last 18 years has been to serve the molecular biology market with outstanding reagents so that biologists can carry out research into many important fields, such as genetics, oncology and forensic science. Bioline's expertise and solid manufacturing capability coupled with an extensive Sales and International distribution network, will complement and enhance the Meridian Group. We are delighted to become part of the Meridian Group which shall bring many new opportunities from markets adjacent to the research area in which Bioline is principally established."
Meridian Bioscience, Inc.,