Laser device and imaging analysis maker Hamilton Thorne said today it picked up Massachusets-based Embryotech Laboratories for $7.25 million.
Embryotech provides quality-control testing services and materials for assisted reproductive technologies, providing quality control testing services and toxicity detection to manufacturers of growth media, labware, disposables and other devices that come into contact with gametes or embryos, Hamilton Thorne said.
“Embryotech is the acknowledged U.S. leader in providing quality control services and testing assays to the ART community. In addition to acquiring a great brand, we will be strengthening the financial performance of Hamilton Thorne. Not only will this acquisition increase our scale, we anticipate that it will diversify our revenue base from a predominantly one-time sale of instruments model to a projected 40% recurring revenues from the sales of services and consumables,” Hamilton Thorne CEO David Wolf said in a press release.
The purchase included a payment of $6.1 million up front and the issuance of 7.8 million common shares of Hamilton Thorne at 15¢ (CAD 20¢) apiece, the company said. Bloom Burton & Co. advised Hamilton Thorne on the transaction.
“Combining Embryotech with Hamilton Thorne’s portfolio of products and services provides Embryotech with increased financial strength, marketing expertise, and access to the international markets served by Hamilton Thorne. This relationship will bring greater resources to support our current operations and growth plans as well as provide greater opportunities to our employees,” Embryotech prez Eric Dorman said in a prepared statement.
Hamilton Thorne said it expects the acquisition will be accretive to earnings, expecting to see over $5 million in revenue and $1.5 million to EBITDA in 2017.