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Share 2016-09-28 17:29 RATOS B 40.31 SEK

Dynal Biotech makes add-on acquisition in USA

2003-10-23

Ratos's Norwegian associated company Dynal Biotech is strengthening its presence in the US market and complementing its operations within Tissue Typing through acquisition of the operations in the US company Pel Freez Diagnostics. The acquisition also includes Pel Freez Diagnostics' operations in China.
Dynal Biotech is a world leader in research, development and production of magnetic and non-magnetic micro particles. The main application for these products is separation of biological material within diagnostics and medical research. The annual growth rate during 1998-2002 averaged 20%. At the same time earnings (before net interest and goodwill amortisation) increased by 60% per year and reached NOK 143m in 2002 (pro forma).
 
With today's acquisition within Tissue Typing, Dynal is strengthening its presence and growth opportunities in the American market. Together the sales organisations of Dynal and Pel Freez will be able to provide a better service to existing customers within all business areas, as well as reaching out to new customers. For this reason, the acquisition is also expected to lead to increased sales of Dynal's existing product range. Furthermore, the acquisition gives Dynal a foothold in the fast-growing Chinese market.
 
The acquired operations today have total annual sales of approximately USD 12m. The seller is the company's founder, David W. Dubbell. The parties have agreed not to disclose the purchase sum.
 
"Dynal fits in very well with Pel Freez Diagnostics' operations  as regards product range, industrial expertise and organisation. This acquisition will give Dynal access to production, R&D and sales capacity that will make a positive contribution to all our business areas," says Jon Hindar, CEO of Dynal.
 
"It is pivotal for a company like Dynal to have a strong position in the US market which is so important for biotechnology and medical research and development," says Mats Lönnqvist, Senior Investment Manager at Ratos and responsible for Ratos's investment in Dynal.
 
 
Since the acquisition is being financed with Dynal's own funds and loans, shareholders are not providing any additional capital. Ratos has a 25% holding in Dynal and the consolidated book value of the holding at 30 June was SEK 269m.