Thermo Fisher Scientific Inc, the world leader in serving science, has signed a definitive agreement to acquire B.R.A.H.M.S. AG for €330 million (approximately $470 million USD).
B.R.A.H.M.S. is a provider of specialty in-vitro diagnostic tests based on its patented biomarkers for sepsis, cardiovascular and pulmonary diseases, as well as intensive care treatments and prenatal screening. The company is based outside of Berlin in Hennigsdorf, Germany, and has sales offices in Europe and the US. With approximately 400 employees serving customers in 65 countries around the world, B.R.A.H.M.S. generated 2008 revenues of €75 million (approximately $105 million USD). The transaction is expected to be accretive to earnings per share in 2010.
B.R.A.H.M.S. is best known for its flagship product, Procalcitonin (PCT), a proprietary biomarker for the diagnosis and treatment of sepsis, a potentially life-threatening condition in which a patient’s bloodstream is overwhelmed by bacterial infection. B.R.A.H.M.S.’ PCT test has become the gold standard in Europe for the early diagnosis of sepsis, which is critical for patient survival, and the subsequent monitoring of treatment. The European testing model is expected to be replicated in the U.S., where approximately 750,000 cases occur every year and one third are fatal. The company’s strong development pipeline is focused on new biomarkers for bacterial infections, cardiovascular disease and neurological disorders. B.R.A.H.M.S. also offers diagnostic tests and instrumentation for thyroid, prenatal, autoimmune and oncology screening in both laboratory and point-of-care settings.
“B.R.A.H.M.S. is a significant addition to our specialty diagnostics portfolio, bringing exciting new products and technologies to an area of our company that offers some of our greatest opportunities for growth,” said Marijn E. Dekkers, president and chief executive officer of Thermo Fisher Scientific. “B.R.A.H.M.S. assays and instrumentation are a strong complement to our existing products for immunoassay testing, and its robust R&D pipeline creates promising opportunities to commercialize new patented diagnostic tests. In addition, the company gives us a significant reagent manufacturing footprint in Europe, while allowing us to leverage our deep customer access in the U.S. to market innovative new B.R.A.H.M.S. products, such as PCT and others now in development. This acquisition reinforces our strategy of building on our leadership in niche specialty diagnostics markets.”
B.R.A.H.M.S. is jointly owned by its senior management team and a private equity firm. The transaction, which is expected to close in late September 2009, is subject to applicable regulatory approvals and a customary post-closing purchase price adjustment. B.R.A.H.M.S. will be integrated into the Specialty Diagnostics business within Thermo Fisher’s Analytical Technologies Segment.
Source: Thermo Fisher
