IRVINE, Calif., Dec. 1 /PRNewswire-FirstCall/ -- CalbaTech, Inc. (BULLETIN BOARD: CLBE) (http://www.calbatech.com/), an emerging life sciences company concentrating on providing products and platforms to the research market for biotech and pharmaceutical companies and to academic institutions, announced today that it has entered into a Letter of Intent to acquire privately held KSE Scientific, Inc., Durham, North Carolina. (http://www.ksesci.com/).
"The acquisition of KSE Scientific strengthens CalbaTech's position in the rapidly growing life sciences market by adding a large-scale distribution company to facilitate product distribution of the Company's Research Reagents Division, which includes MoleculA (http://www.molecula.com/) and recently acquired K-D Medical (http://www.kdmedical.com/)," said James DeOlden, CEO. CalbaTech expects that the acquisition of KSE will strengthen the company overall, increase its margins and be accretive to earnings.
KSE Scientific, with revenues of more than $5.1 million in 2003 and estimated revenues of over $6.7 million in 2004, is a distributor of laboratory supplies to the Pharmaceutical, Biotech and Environmental research and production markets. KSE Scientific presently sells to more than 300 customers in private industry, universities and to State and Federal governments. Key customers include Labcorp, the National Cancer Institute, the National Institutes of Health, the University of North Carolina, the Environmental Protection Agency, Eisai Pharmaceutical, the Centers for Disease Control, and Mayo Clinic. KSE Scientific was named by the North Carolina Triangle Business Journal as one of the 50 fastest growing private companies in 2004.
"CalbaTech continues to be committed to the execution of its strategic business plan of growth through acquisition of profitable companies providing products within the pharmaceutical research market," said Mr. DeOlden. "With the addition of KSE and the recent acquisition of K-D Medical Inc., we will have acquired companies which will generate nearly $8 million in revenues in 2004. Also, we expect significant growth in the revenues of MoleculA and K-D Medical through the large scale distribution of their products by KSE."
"We are very excited about joining the CalbaTech family of companies," said James Lally, President of KSE Scientific. "We believe that the synergistic effect of working directly with KD Medical, MoleculA, and other CalbaTech companies will allow us to exceed the growth rate of more than 25% per year we have enjoyed over the past several years."
About KSE Scientific
KSE Scientific is located adjacent to the Research Triangle Park in North Carolina. KSE Scientific presently sells to companies throughout the US and Canada, with a concentration in the Southeast U.S. The company is headquartered in Durham, N.C. Products include chemicals for the life science and biomedical industries, laboratory equipment and supplies, and chromatography products.
About CalbaTech
CalbaTech is focused on developing and providing products and platforms to the research market, both for biotech and pharmaceutical companies, as well as academic institutions. In addition to growth through acquisition, CalbaTech, comprised of three divisions, Molecular Applications, Research Reagents, and Cellular Therapeutics, is building an experienced and innovative scientific staff, including several notable members of its Scientific Advisory Board, that intend to contribute breakthrough innovation in areas of biological discovery.
Contact: E&E Communications (949) 707-5365 pknopick@eandecommunications.com
Note: Certain statements in this news release may contain "forward looking" information within the meaning of rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Act of 1934 and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, may include forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will be accurate and actual results and future events could differ materially from those anticipated in such statements.
CalbaTech, Inc.CONTACT: E&E Communications, +1-949-707-5365,pknopick@eandecommunications.com, for CalbaTech, Inc.
Web site: http://www.molecula.com/
Web site: http://www.kdmedical.com/
Web site: http://www.ksesci.com/
Web site: http://www.calbatech.com/