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.
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