Mesa Laboratories, Inc. (NASDAQ: MLAB), a prominent player in life science tools and quality control solutions, has successfully acquired GKE-GmbH’s sterilization indicators business and its accredited testing lab, SAL GmbH. Furthermore, Mesa has agreed to purchase Beijing GKE Science & Technology Co. LTD (“GKE China”). The combined acquisitions, known as “GKE,” were valued at €85 million, primarily funded by Mesa’s credit facility and cash reserves. The deal is expected to bolster Mesa’s position in chemical and healthcare indicators, targeting robust long-term growth and strengthening its global presence.
Mesa Laboratories, Inc. (NASDAQ: MLAB) (“Mesa”, “we”, “us” or “our”), a global leader in the design and manufacturing of life science tools and critical quality control solutions, today announced the completed acquisition of GKE-GmbH’s sterilization indicators business and its accredited, independent testing lab SAL GmbH. Additionally, Mesa has entered into a definitive agreement to purchase GKE’s Chinese sales entity, Beijing GKE Science & Technology Co. LTD (“GKE China”). The total purchase price for the acquisition of the three entities is €85M (of which €5M is associated with GKE China), which is subject to customary purchase price adjustments and holdbacks. Collectively these three entities are referred to as “GKE”. The all-cash transactions were or will be funded with proceeds from our credit facility and cash on hand. The GKE China transaction is expected to be completed during our third quarter ending December 31, 2023, and is subject to customary conditions, including receipt of applicable Chinese regulatory approvals.
GKE is headquartered in Waldems, Germany, and is engaged in the business of developing concepts for monitoring, cleaning, and sterilization processes as well as the development, manufacture, validation, and distribution of biological, chemical, and cleaning process indicators. The Waldems GKE facility will serve as Mesa’s center of excellence for the chemical indicator and healthcare business. The three GKE entities are expected to add €19-€20 million of revenues during the first 12 months of complete ownership and deliver mid-single-digit organic revenue growth over the next several years. Excluding the impact of purchase accounting and integration expenses, we expect gross profit as a percentage of revenues to be in line with our existing SDC business and adjusted operating income1 as a percentage of revenues to approach 37%-40% for the same first 12 months of complete ownership.
“GKE brings a highly competitive portfolio of sterilization indicators to protect patient safety across global healthcare markets which includes hospitals, clinics, and dental services. The combination of GKE’s strength in chemical indicators and healthcare-focused sales channels will complement our SDC division’s strength in biological indicators and life science channels placing both businesses in a position for robust long-term growth. We believe that The Mesa Way approach to continuous improvement will help the GKE team to continue to rapidly scale both commercially and operationally. GKE will be Mesa’s 7th acquisition within our SDC division and we expect the combined businesses to rapidly create additional value for our collective customers,” said Gary Owens, President and Chief Executive Officer of Mesa.
Want to publish your own articles on DistilINFO Publications?
Send us an email, we will get in touch with you.
“The combination of GKE with Mesa’s SDC division creates one of the world’s largest sterilization and cleaning process indicator companies. Combined GKE and Mesa will have over 200 distribution partners serving customers in over 80 countries. Mesa is the ideal match to continue GKE’s mission to provide technical solutions to our customers”, said Dr. Ulrich Kaiser, Managing Director of GKE.
Source: Biospace