Mesa Laboratories, Inc. announced the acquisition of certain assets and liabilities of two of its European distributors by the company’s subsidiary, Mesa France SAS (“Mesa France”), located near Lyon, France. These acquisitions involved CoaChrom Diagnostica GmbH of Austria and bioTRADING Benelux B.V of the Netherlands. Both of these companies were distributors of the company’s biological indicator (“BI”) products. Combined acquisition of the BI distribution rights from these two companies is expected to add approximately $300,000 to Mesa’s revenues in the first 12 months and be accretive to Mesa’s earnings per share.
Mesa France purchased only the BI distribution rights from these two companies and the sales 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.
Biological indicators are used to assess the effectiveness of sterilisation processes, including steam, gas (such as Ethylene Oxide or Chlorine Dioxide), hydrogen peroxide and radiation, in the hospital, dental, medical device and pharmaceutical industries. These two companies have been distributors of Mesa’s BI products for many years, selling primarily to the pharmaceutical and medical device manufacturing markets. After a short transition period, Mesa France will continue this distribution business, uninterrupted, from their office near Lyon. Centralised supply of BI products from Lyon will improve the service to Mesa’s European customers by increasing product availability and reducing shipping time.
“These two acquisitions complete the build-out of Mesa’s direct BI sales efforts in western Europe that was started with the acquisition of Mesa France (formerly Amilabo SAS) in April 2014,” said John J. Sullivan, President and CEO of Mesa. “In total, we have purchased distribution rights from 12 of our former BI distributors and Mesa now sells direct into our target pharmaceutical and medical device markets throughout much of Western Europe. Selling direct allows Mesa to capture additional margin and to better understand the needs of our customers, enabling us to grow our European BI business more effectively.”
