STRATEC Biomedical Systems AG / Acquisition
02.07.2010 08:45
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STRATEC boosts US presence through acquisition
STRATEC extends US presence within its expansion strategy by acquiring
Ballista, Inc.
- Technology pool extended in optical systems and components
- Cooperation with partners and customers in the US
- Development and production capacity extended
- Expansion of supplier network in US-dollar area
Birkenfeld, July 2, 2010
STRATEC Biomedical Systems AG, Birkenfeld, Germany, (Frankfurt: SBS; Prime
Standard) today announces its acquisition of 100% of the shares of
privately held Ballista, Inc., Newbury Park, CA, USA.
The purchase price, which will be adjusted to exclude receivables and
liabilities, is set to a maximum of US$ 5.2 million, and will be paid in
cash and US$ 1.2 million of treasury stock. This purchase price includes a
performance-related purchase price component of US$ 0.95 million, and the
shares will be subject to various lockup periods. The execution of the
takeover is subject to certain conditions, which are expected to be met by
July 6, 2010. Ballista is scheduled to be consolidated into the STRATEC
Group from July 1, 2010, and while the purchase price allocation is
expected to lower the 2010 EBIT margin by approximately 0.3 percentage
points, STRATEC has no plans to adjust its financial guidance for 2010.
(Current guidance: Revenues in 2010: EUR 96 - 102 million; EBIT margin in
2010: minimum of 19%; CAGR revenues between 2010 and 2012 > 15%)
Ballista specializes in precision optics technology and related
development, production and advisory services with a strong track record as
a supplier to the diagnostics and medical technology, biotechnology and
aerospace industries. Its expertise and capacities range from prototype
assembly through to serial production. In 2009, Ballista generated revenues
of US$ 2.7 million with 18 employees. The company was founded in 2004 and
is based in Newbury Park, a short distance from Los Angeles. Its three
founding partners have longstanding experience in managing and expanding
high-growth companies and they have committed, via employment contracts,
stock holdings and options, to remain engaged and to work with STRATEC to
further develop its US presence and to build on Ballista's existing
customers and technology base.
Given its existing medical technology and aerospace orders, Ballista is
already well positioned for the high regulatory and organizational
requirements in the in-vitro diagnostics industry. The business is
certified under the applicable quality management standards, and it will be
gradually integrated into STRATEC's quality management system.
The two companies have successfully worked together on joint programs for
STRATEC's well-known customers. Given their similar dynamic corporate
cultures; focusing on trust-based, reliable, quality-driven cooperation for
their customers and suppliers, STRATEC and Ballista are confident they will
be able to pursue a very rapid course of integration. The companies will
present themselves jointly for the first time at the American Association
for Clinical Chemistry (AACC) in Anaheim, CA, USA, from July 25 to July 29,
2010.
STRATEC has developed numerous projects for customers in the US in recent
years. The acquisition of Ballista underlines STRATEC's commitment to
intensify cooperation between system integration specialists by developing
an additional service and competence center, to enhance its ability to
react flexibly within the relevant time zone, and to create a foothold in
the US market for subsidiaries such as Invitek. In addition, by extending
the supplier structure within the North American Free Trade Area (NAFTA),
the company also aims to create a natural hedge against potential currency
fluctuation. Lastly, the infrastructure should also assist in securing
further orders in the US.
Hermann Leistner, CEO of STRATEC commented on the two companies' joint
future: 'By acquiring Ballista, STRATEC is continuing its successful
strategy of widening its technology offering to OEM customers. Working
independently as partners to the industry, we aim to further extend our
leadership in technologies and processes for in-vitro diagnostics
automation solutions. To this end, in Ballista we have found an experienced
team offering both competence and experience.'
Milton Lee, Managing Director of Ballista added: 'Given a consistent
positive outlook in the medical technology business and new order growth,
we have already begun to expand our business activities and competencies in
this area. Joining forces with STRATEC will enable us to offer, from a
single source, additional competencies and technologies. By working
together, both Ballista and STRATEC will be able to significantly boost
their market presence and the scope of the products and services offered to
their customers. We are delighted by this cooperation and look forward to
contributing to the two companies' global success as part of the STRATEC
Group.'
The law firm FeldbergPacific Law Group, San Francisco, CA, USA, played a
leading role in handling the transaction for STRATEC.
About STRATEC
STRATEC Biomedical Systems AG (www.stratec-biomedical.de) designs and
manufactures fully automated systems for its partners in the fields of
clinical diagnostics and biotechnology. These partners market such systems,
in general together with their own reagents, to laboratories, blood banks
and research institutes around the world. The company develops its products
on the basis of its own patented technologies. Shares in the company (ISIN:
DE0007289001) are traded in the Prime Standard segment of the Frankfurt
Stock Exchange.
The STRATEC Group consists of the publicly listed parent company STRATEC
Biomedical Systems AG and of subsidiaries and second-tier subsidiaries in
Germany, the USA, the UK, Switzerland and Romania.
Further information can be obtained from:
STRATEC Biomedical Systems AG
Andre Loy, Investor Relations
Gewerbestr. 37, 75217 Birkenfeld
Germany
Phone: +49 7082 7916 190
Fax: +49 7082 7916 999
Email: ir@stratec-biomedical.de
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Language: English
Company: STRATEC Biomedical Systems AG
GewerbestraÃe 37
75217 Birkenfeld
Deutschland
Phone: +49 (0)7082 7916 0
Fax: +49 (0)7082 7916 999
E-mail: info@stratec-biomedical.de
Internet: www.stratec-biomedical.de
ISIN: DE0007289001
WKN: 728900
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in München, Düsseldorf, Stuttgart
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DGAP-News: STRATEC boosts US presence through acquisition
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