Sartorius Acquires Majority Stake in Biological Industries to Expand Biologics Portfolio

VCBeat (WeChat ID: vcbeat) learned from foreign media reports that on December 5, 2019, Sartorius (Sartorius Stedim Biotech), a leading international partner in life science research and the biopharmaceutical industry, announced an agreement with Israeli cell culture media manufacturer Biological Industries to acquire more than 50% of its shares from its owners, Kibbutz Beit Haemek and private equity fund Fortissimo Capital, for approximately €45 million in cash.

Meanwhile, the two parties also reached an agreement granting Sartorius the right to acquire an additional 20% equity stake within three years. Subject to compliance with the terms of the agreement, the acquisition is expected to be completed by mid-December this year.

Biological Industries specializes in cell culture media, particularly for cell and gene therapy, regenerative medicine, and other advanced therapies. Founded in 1981, the company currently employs approximately 130 people, primarily working at its headquarters, R&D, and production facilities near Haifa, as well as at sales offices in the United States, Europe, and China. Biological Industries has achieved significant revenue growth, with sales expected to reach €25 million this year and an EBITDA operating margin projected to reach double digits.

Cell culture media are used in the research, clinical development, and production of biopharmaceuticals, as well as in cell and tissue therapy applications. Biological Industries offers comprehensive media solutions, including a broad range of clinical-grade media for culturing cells and stem cells and for cryopreservation, all of which are relevant to advanced therapy research and clinical development. Additionally, Biological Industries provides cell culture reagents and serum-free media.

Sartorius, founded in 1870, is a renowned leading supplier and premier international partner in the biopharmaceutical industry. The company operates through two divisions: the Bioprocess Solutions division and the Laboratory Products & Services division. The Bioprocess Solutions business generates the majority of revenue, providing solutions for the biopharmaceutical sector. Its product portfolio includes process control tools, fluid management systems, bioreactors, fermenters, as well as filtration and purification products. The Laboratory Products division offers laboratory instruments and consumables, including balances, quality control products, pipettes, cell culture tools, and laboratory water purification systems. The group achieves an average annual growth rate in the double digits and regularly expands its product portfolio through acquisitions of complementary technologies. In 2018, the company’s annual sales revenue amounted to approximately €1.57 billion. Currently, more than 8,800 employees work at Sartorius’s approximately 60 production and sales sites worldwide, serving global customers.

Regarding this acquisition, Joachim Kreuzburg, CEO of Sartorius, stated: “By acquiring a majority stake in Biological Industries, we will significantly expand our product range of cell culture media and complement our portfolio for customers in the rapidly growing advanced therapies market.”

(Compiled by Wang Fang)