August 30, 2012 -- Charles River Laboratories International, Inc. (NYSE: CRL) announced today that it has acquired Accugenix, Inc., the premier global provider of cGMP-compliant contract microbial identification testing, for approximately $17 million in cash. This acquisition strengthens Charles River’s Endotoxin and Microbial Detection 1 (EMD) portfolio of products and services by providing clients with state-of-the-art microbial detection services for manufacturing in the biopharmaceutical, medical device, nutraceutical and consumer care industries. The acquisition is expected to be neutral to earnings per share on both a GAAP and non-GAAP basis in 2012. In 2013, it is expected to represent approximately 1% of total net sales and be slightly accretive to both GAAP and non-GAAP earnings per share.
Accugenix is an acknowledged industry leader in species-level identification and strain typing of bacteria and fungi that are recovered from manufacturing facilities. The company has invested in proprietary library databases which allow it to identify over 5,000 species of organisms. Utilizing state-of-the-art and proprietary in vitro technologies, coupled with scientific expertise and analysis, Accugenix excels in providing accurate, time-effective and cost-effective microbial identification services required to meet internal quality standards and government regulations.
James C. Foster, Chairman, President and Chief Executive Officer of Charles River said, "The acquisition of Accugenix is the first step in our broader strategy to become the premier provider of rapid microbial and endotoxin detection products and services to the biopharmaceutical industry. Over the next several years, we intend to enhance our capabilities through both product extensions and acquisitions. We believe that execution of this strategy will advance our position as the market leader in endotoxin and microbial detection.”
Caution Concerning Forward-Looking Statements
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate,” “believe,” “expect,” “will,” “may,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements include statements in this press release regarding the acquisition of Accugenix, Inc., and Charles River’s expectations with respect to the impact of Accugenix on the Company, its service offerings, net sales and earnings, as well as Charles River’s future growth in the area of endotoxin and microbial detection. Forward-looking statements are based on Charles River’s current expectations and beliefs, and involve a number of risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from those stated or implied by the forward-looking statements. Those risks and uncertainties include, but are not limited to, the ability to successfully consummate the acquisition of Accugenix. A further description of these risks, uncertainties, and other matters can be found in the Risk Factors detailed in Charles River's Annual Report on Form 10-K as filed on February 27, 2012, as well as other filings we make with the Securities and Exchange Commission. Because forward-looking statements involve risks and uncertainties, actual results and events may differ materially from results and events currently expected by Charles River, and Charles River assumes no obligation and expressly disclaims any duty to update information contained in this news release except as required by law.
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1 Charles River’s Endotoxin and Microbial Detection business is also referred to as “Endosafe” or “ In Vitro.”