Abcam swallows Expedeon brands in €120m cash deal
Cambridge life science power player Abcam is paying €120 million cash to acquire Expedeon’s Proteomics and Immunology business, expanding offerings into the fast-growing conjugation segment.
The deal is to be funded from a drawdown of the group’s revolving credit facility and existing cash resources. It devours Expedeon Ltd, Innova Biosciences Ltd and TGR Biosciences.
Abcam expects the purchase to be accretive from the first full year of ownership and to deliver a pre-tax return on invested capital ahead of the group’s wight of average cost of capital by the third full year of ownership (FY23).
Abcam says protein labelling is a large, growing market – essential to biological research in proteomics and that the acquisition is a perfect strategic fit.
The acquisition is subject to approval by Expedeon shareholders at a general meeting on December 19. If approved, the deal is expected to close in early 2020.
The proposed transaction results in the acquisition of substantially all the revenues, profits and assets of Expedeon. The most recently audited Expedeon results for the 12 months ended December 31 were revenues of €13.1m (£11.3m), adjusted EBITDA of €1.0m (£0.9m) and net assets of €46.5m (£40.0m).
Abcam CEO Alan Hirzel said: “Abcam’s growth strategy is committed to building out conjugation and assay capabilities. Expedeon’s portfolio of products and technology, combined with Abcam’s antibody and protein strengths, will put our company in a strong position to address the growing need for antibody conjugation and multiplexing solutions.
“We look forward to taking these innovation capabilities to market to provide a broader array of distinctive products for our customers.”