Mesa Laboratories, Inc. announced the acquisition of certain assets and liabilities of HANSAmed Limited (“HANSAmed”) by the company’s subsidiary, Mesa Canada, Inc. (“Mesa Canada”). HANSAmed was a distributor of the company’s biological indicator (“BI”) products and mail-in testing services to the dental market in Canada. The acquisition is expected to add approximately $200,000 to Mesa’s revenues and to be accretive to diluted net income per share during the first 12 months.
Mesa Canada purchased only the BI distribution rights from HANSAmed and as a result, the sale and service of all their other product lines will continue as normal and are not affected in any way by the acquisition of the BI business.
HANSAmed distributes self-contained biological indicators (“SCBI”) to the dental market in Canada in those provinces that have implemented mandatory daily testing of sterilisers. In this situation, in-office testing using a SCBI is the only practical solution, as test results are available within 10 to 24 hours. In the provinces where daily testing of sterilisers is not required, HANSAmed delivers a kit that contains sufficient BI’s for 52 weeks or 12 months of testing. To conduct the test, the BI’s are processed through the steriliser in the dental office and then mailed back to HANSAmed for testing to determine if the steriliser was working correctly. HANSAmed also provides online access to test results, allowing the dentist to track the performance of each steriliser. After a short transition period, Mesa Canada will continue this distribution business from its office in Markham, Ontario. Centralised supply of BI products from Markham will improve the service to Mesa’s Canadian customers by increasing product availability and reducing shipping time.
“This is the second acquisition of a Mesa Canadian BI distributor, which increases our direct selling efforts in this territory,” said Mr. Peter Jung, VP of Corporate Development and Strategy for Mesa. “This follows a similar build-out strategy Mesa employed in Western Europe to develop direct BI sales efforts. The acquisition of HANSAmed will increase Mesa’s Canadian dental testing business by approximately 30 per cent, improving efficiency and profitability. Selling direct allows Mesa to capture additional margin and to better understand the needs of our customers, enabling us to grow our Canadian BI business more effectively.”