Biopool International Acquires Source Scientific in Multi-Million Dollar Deal

Strategic Insights -

Biopool International, Inc. (Nasdaq: BIPL) has signed an agreement to acquire Source Scientific, Inc. (Boston: SSF), a leading manufacturer of laboratory instrumentation, in a deal valuing approximately $750 million. The acquisition is expected to add substantially to Biopool's revenue and earnings growth in 1996 and beyond, as the combined company leverages Source's expertise in instrumentation and Biopool's strengths in reagent manufacturing.

Key Takeaways:

  • The acquisition is structured as a merger of a newly formed subsidiary of Biopool with and into Source Scientific, with shares of Biopool common stock being offered in exchange for shares of Source Scientific common stock.
  • Source Scientific generated approximately $5 million in revenues for its fiscal year ended June 30, 1995, despite operating at a loss, and management expects the company to become profitable in 1996.
  • The combined company will offer a comprehensive range of reagents and instrumentation, enabling the development of new tests in medical diagnostics, environmental testing, and food safety.
  • Biopool will issue an aggregate of approximately 3.0 million new shares of common stock in the transaction, which will be completed late in the first quarter of 1996, subject to various conditions.
  • Source Scientific serves a market estimated to be approximately $750 million, supplying OEM, custom-designed, and branded instrumentation.
  • Michael D. Bick, Ph.D., Chairman and CEO of Biopool, stated, "This acquisition will add substantially to our revenue and earnings growth in 1996 and beyond."
  • Richard A. Sullivan, President and CEO of Source Scientific, stated, "We are excited about this combination with Biopool and look forward to emerging as a profitable subsidiary."

Statistics:

  • Biopool International has acquired Source Scientific for approximately 3.0 million shares of its common stock, valuing the acquisition at approximately $750 million.
  • Source Scientific generated approximately $5 million in revenues for its fiscal year ended June 30, 1995.
  • The combined company will operate in a market valued at approximately $750 million, supplying OEM, custom-designed, and branded instrumentation.
  • Biopool International develops and manufactures a full range of test kits to assess and diagnose disorders of blood coagulation, thrombotic risk factors, fibrinolysis, platelet function, and vascular systems.
  • The Company's products are sold to hospitals and clinical and reference laboratories on a worldwide basis through an extensive network of distributors.

Sources:

  • PRNewswire: Biopool International, Inc. (Nasdaq: BIPL) today announced that it has signed an Agreement and Plan of Merger to acquire Source Scientific, Inc. (Boston: SSF).
  • Biopool International, Inc. press release: Biopool International, Inc. and Source Scientific, Inc. Announce Agreement and Plan of Merger.