PerkinElmer Completes $1.3 Billion Acquisition of EUROIMMUN to Expand IVD Portfolio

VCBeat (WeChat ID: vcbeat) has learned, Recently, PerkinElmer (NYSE: PKI) officially announced the completion of its acquisition of EUROIMMUN Medical Laboratory Diagnostics AG, with a total transaction value of approximately $1.3 billion (equivalent to RMB 8.5 billion).

PerkinElmer previously announced on June 19, 2017, that it had entered into a definitive agreement to acquire Euroimmun. Under the terms of the agreement, PerkinElmer would acquire 100% of the equity interests in Euroimmun.

As a leading enterprise in the in vitro diagnostics (IVD) industry, PerkinElmer Diagnostics’ core business encompasses newborn screening, prenatal screening, infectious disease diagnostics, molecular diagnostics, and laboratory data analytics. Its solutions are primarily applied to the screening and diagnosis of inherited metabolic disorders, routine oncology, and infectious diseases (including blood bank systems), as well as sample preparation for genomics and sequencing and database solutions.

PerkinElmer’s announcement in June stated that the acquisition combines the two companies’ innovation- and results-driven cultures, jointly committed to advancing global health, alsoExpand PerkinElmer’s product coverage into the autoimmune and allergic disease diagnostics market, while providing Chinese consumers with new infectious disease diagnostic products and services.

Furthermore, robust capital allocation will significantly advance PerkinElmer’s strategic priorities and generate highly attractive financial returns.

In 2016, PerkinElmer reported annual revenue of approximately $2.1 billion. Over the past five years, EU Medtech has seen an average turnover growth of 19%, with this year’s revenue projected to reach approximately $310 million.Following the completion of this acquisition, PerkinElmer’s 2018 adjusted earnings per share (EPS) is projected to increase by approximately $0.28 to $0.30.

PerkinElmer is less renowned in the healthcare sector than in the industrial instrumentation field, but as a giant spanning both industrial instrumentation and healthcare, it still wields considerable global influence. In 2016, PerkinElmer reported sales revenue of $2.11 billion, with over $1.5 billion from its industrial instrumentation business and more than $600 million from its in vitro diagnostics business.

Spending as much as $1.3 billion to acquire Euroimmun, which has annual sales revenue of $310 million, demonstrates its ambitious aspirations in the IVD sector; the acquisition price, equivalent to 4.2 times its revenue, is actually quite a bargain.

PerkinElmer truly became well-known among professionals in China’s IVD market after its 2009 acquisition of Shanghai Xinbo, a molecular diagnostics company, and its 2012 acquisition of Haoyuan Biotech. These two acquisitions earned the company significant respect within the industry.

Actually, PerPerkinElmer has established an extensive presence in the IVD sector, acquiring numerous clinical laboratories and service providers across the United States and Europe.(including NTD Labs, Pediatrix, Signature Genomics, Surendra, Snibe Diagnostics, and Visen Medical), continuously expanding its business focus in the in vitro diagnostics sector.

This acquisition of Euroimmun, the German giant in autoimmune diagnostics, further underscores its ambitious vision in the field of in vitro diagnostics. We are confident that, leveraging its strong integration capabilities, Euroimmun will deliver substantial returns.

PerkinElmer, founded in 1937 and headquartered in Waltham, Massachusetts, USA, is a globally renowned technology leader with its business focused on three areas: life sciences, optoelectronics, and analytical instruments. In 1944, PerkinElmer entered the new field of analytical instrumentation and successfully launched the world’s first commercial infrared spectrophotometer, the Model 12.

This pioneering technology laid the foundation for modern chemical analysis methods and established PerkinElmer as a leading global supplier of chemical analysis instruments. With a long history and distinguished achievements in the analytical instrumentation industry, PerkinElmer is also the world’s third-largest supplier in the biochemistry sector, ranking first globally in high-throughput drug screening, automated liquid handling, and sample preparation.

EUROIMMUN was founded in 1987, with its headquarters located in Lübeck, a renowned seaside resort in northern Germany. As a world-leading developer and manufacturer of medical laboratory diagnostic reagents and automated instruments, the company not only possesses advanced testing products and technologies in the fields of autoimmune diseases, infectious diseases, and allergic disorders but has also grown into a world-class manufacturer of medical laboratory diagnostic equipment, leveraging its globally patented advanced production processes and microscopic detection technologies.

Furthermore, EUROIMMUN is committed to the research and development of comprehensive laboratory solutions, having developed a series of high-level laboratory automation instruments and software systems. To date, EUROIMMUN’s products and services have reached tens of thousands of laboratories across five continents and nearly 100 countries and regions worldwide.