Bio-Rad completes AbD Serotec acquisition
Total transaction price is 53 million euros (approximately $69 million)
HERCULES, Calif.—Bio-Rad Laboratories, Inc. has announcedthe completion of its acquisition of AbD Serotec, a division of MorphoSys AG,for approximately 53 million euros (roughly $69 million) in cash.
Per the terms of the transaction, Bio-Rad has acquired allof MorphoSys' AbD Serotec research reagent and diagnostic business, whichincludes AbD Serotec as well as three subsidiaries: MorphoSys UK Ltd.,MorphoSys AbD GmbH and MorphoSys US, Inc. the transaction also includes a fullypaid, non-exclusive license agreement for the use of MorphoSys' HuCALtechnology for diagnostic and research purposes. The $69 million price tagconsists of the purchase price, approximately 5 million euros (approximately$6.6 million) worth of compensation for cash reserves in the AbD Seroteccompanies and a license payment for the use of the HuCAL technology.
"We are pleased to have AbD Serotec join Bio-Rad,"Norman Schwartz, president and CEO of Bio-Rad, said in a press releaseregarding the deal. "With AbD Serotec's comprehensive catalog ofantibodies, we are able to offer our customers total assay solutions that canbe validated on many of our research platforms for Western blotting, multiplexprotein expression, ELISA and cell sorting."
The transaction was originally announced back in December2012, when the companies announced the signing of a definitive agreement underwhich Bio-Rad would acquire AbD Serotec. Brad Crutchfield, president ofBio-Rad's Life Science Group, said upon the deal's announcement that thecompany is "impressed with the quality of AbD Serotec's products as well as thecompany's reputation." The acquisition, he noted, will grant Bio-Rad "access toa comprehensive catalog of antibodies allowing us to better serve our customersby offering total assay solutions that can be validated on our researchplatforms for Western blotting, multiplex protein expression, ELISA and cellsorting. In addition, we will be able to exploit a powerful in vitro technologyto accelerate future antibody generation."
AbD Serotec is the research and diagnostic antibody segmentof MorphoSys' business, a global antibody supplier with offices in Raleigh,N.C.; Oxford, United Kingdom; Düsseldorf, Germany; and Puchheim, Germany. Thecompany's offerings include apoptosis kits, immunology antibodies, autophagyreagents, CD marker antibodies, epitope tag antibodies and veterinary reagents.
Following the sale of AbD Serotec, MorphoSys will beincreasing its focus on its therapeutic business segment, according toMorphoSys' CEO Dr. Simon Moroney. Moroney noted in the original announcement ofthe deal that MorphoSys is "making great progress in our therapeutic antibodypipeline, which is a huge potential value driver … With the sale of AbDSerotec, we will bring a laser-like focus to driving growth in this, our areaof core competence."
"We are delighted to have reached the closing of thetransaction just a few weeks after the announcement was made. With thedivestment of AbD Serotec completed, MorphoSys can devote 100 percent of itsattention to building value in its core therapeutics business," JensHolstein, chief financial officer of MorphoSys AG, said in a statement.Holstein noted in a previous press release that the acquisition by Bio-Radprovides AbD Serotec and its employees "an ideal environment in which toexploit its potential in the research and diagnostic arena."