Charles River Pays $585 Million Cash to Take Out WIL Research
January 7, 2016
By Alex Keown, BioSpace.com Breaking News Staff
WILMINGTON, Mass. – Charles River Laboratories struck a deal to acquire privately-held WIL Research for $585 million to bolster its position as a contract research organization and expand its presence in Europe, the company announced this morning.
James Foster, chairman of chief executive officer of Charles River, said the acquisition of WIL Research “incorporates the key attributes we require in an acquisition: high-quality services, scientific expertise, complementary capabilities, and access to growing end markets.” Additionally, the acquisition will expand Charles River’s client base in both the biotechnology arena as well as agricultural and industrial chemical clients, the company said.
“The acquisition will also expand our geographic footprint, particularly in continental Europe, providing needed capacity to meet current and future demand and enabling Charles River to provide a broader range of services proximate to our global clients,” Foster said in a statement.
WIL Research is a provider of safety assessment and contract development and manufacturing services to biopharmaceutical and agricultural and industrial chemical companies.
WIL Research is expected to generate $215 million for 2015, an increase of 9 percent over 2014 revenues, according to reports. That revenue growth is expected to continue. Charles River said the WIL Research deal is expected to add $150 to $170 million to revenue this year and $240 to $250 million in 2017.
Charles River stock is up this morning following the announcement, currently trading at $78.12 per share. The transaction, financed with cash and stock, is expected to close later this year.
Like many companies in the healthcare industry, Charles River has grown through careful acquisitions that strengthen its position. In February of 2015, the company announced an M&A strategy of growth. Speaking at the Leerink Swann Global Healthcare Conference, Foster, said Charles River was already in “serious conversation” with some companies about possible mergers or acquisitions.
“We’ll be disappointed if we don’t get some meaningful M&A done in 2015,” Foster said at the time.
In July, Charles River bolstered its microbial detection business with the $212 million acquisition of Celsis International Ltd. Charles River said it expects the acquisition of Celsis, a provider of rapid microbial detection systems for quality control testing in the biopharmaceutical and consumer products industries, to make its Endotoxin and Microbial Detection business a “one-stop-shop” for rapid quality control testing. By offering rapid QC testing for both sterile and non-sterile applications, Charles River can serve as a single provider for clients seeking a complete solution for quality control testing services, the company said this morning.
More recently, Charles River acquired Oncotest GmbH, a Freiburg, Germany-based contract research organization (CRO) providing discovery services for oncology, for $38 million.
In 2012, Celsis sold off its Celsis Analytical Services division to North Carolina-based AAIPharma Services Corp. Celsis Analytical Services performs material testing services for the pharmaceutical, biotechnology and manufacturing sectors.