Your cart is empty.
Zurich, Switzerland, June 10, 2005 – Tecan (SWX: TECN) a leading manufacturer of instruments and solutions for the biopharmaceutical and clinical diagnostic industries and REMP today announced that they have signed an agreement by which Tecan will acquire REMP for CHF 92 million in cash & shares. Founded in 1986, privately held REMP is the global leader in the supply of large-scale automated storage and retrieval systems for the pharmaceutical and biotech industries. REMP has over 140 employees worldwide and is headquartered near Berne, Switzerland.
Thomas Bachmann, CEO of Tecan, says: “REMP has a unique reputation for innovation, quality and service. We believe this transaction brings significant strategic, operational and financial benefits to both of our companies and shareholders.” For Tecan, the acquisition of REMP offers immediate access to a new, complementary and growing market for a host of sample logistic applications in our biopharma business. It also adds a further consumables channel to the company’s portfolio. Bachmann adds: “We firmly believe that this is a win-win situation for both organizations and we intend to deliver the benefits of our joint undertakings to our customers in the pharmaceutical and biotech industries.”
This transaction also reflects a clear commitment to both companies’ Swiss locations as research and development centers as well as production locations for sophisticated instruments and systems“.
Otto E. Ramsebner, founder and CEO of REMP, commented: “Having worked extensively with Tecan in the past, I am certain that the ability to leverage a global sales- and service organization opens new avenues for market growth and product innovation. My strong belief in the benefits of the combination of both companies has convinced me to take a significant equity position in Tecan.”
The Board of Directors of Tecan has approved the acquisition and subsequent integration of REMP into the Tecan organization. Chairman Mike Baronian: “We believe this transaction will impact favourably on earnings and provide sustainable value to employees, customers and shareholders alike.”
Increasingly, the pharmaceutical and biotech industries have to manage and process large and rapidly growing families of potential drug candidates, in many cases involving millions of compounds that represent a firm’s key intellectual assets and future wealth. REMP is the global leader in the supply of large-scale automated storage and retrieval systems and has an established customer base consisting of the majority of the world’s leading pharmaceutical companies.
By offering superior compound and sample management systems and solutions, REMP delivers key technologies that enhance some of the most time- and cost-critical parts of the drug discovery process. In addition to its strong presence in consumables through its REMP Tube Technology™,
REMP develops and produces automation systems, devices, and software for a broad range of applications in the pharmaceutical, agro & chemical industries worldwide.
With 2004 sales of CHF 36.4 million REMP recorded an EBITDA margin of 17%. A combination of new products and a strong order book have allowed the company to reach sales of CHF 10 million in the first quarter of 2005. The balance sheet contains no long-term debt and an equity ratio of 73%. The transaction price amounts to CHF 92 million including CHF 6 million cash (subject to closing adjustment). The transaction is financed through a combination of Tecan treasury shares (CHF 25 million) and cash (CHF 67 million) from a debt facility. No new shares will be issued as part of the transaction which will be effective and consolidated as of July 1st 2005.
A conference call discussing this acquisition in further detail will take place today at 11:00 am (CET). This event will also be relayed by live audio web cast which interested parties may access via Tecan’s corporate home page at www.tecan.com. A link to the web cast will be provided immediately prior to the event.
REMP (www.remp.com) is a leading compound and sample management organizations the leading developer and manufacturer of automated compound and sample storage systems with headquarters in Switzerland and subsidiaries in the USA, Germany and Japan. REMP provides a range of medium- to large-scale automated storage and retrieval systems for compound management groups in the pharmaceutical and biotechnology industries. Compound management is a key foundation of the drug discovery and development process as compound libraries represent one of the most important assets of life science companies. In addition, many of the world’s largest pharmaceutical and agrochemical companies use the REMP Tube Technology. In addition to Otto E. Ramsebner, other large shareholders include the Suisse Private Equity House, Zurich (www.capvis.com) & Corisol Holding AG both of whom have provided financing & strategic guidance over the past 5 years.
Tecan (www.tecan.com) is a leading player in the Life Sciences supply industry that specializes in the development, production, and distribution of solutions enabling the discovery of pharmaceutical substances, as well as for genomics, proteomics, and diagnostics. Tecan clients are leading pharmaceutical and biotechnology companies, university research departments and diagnostic laboratories. Founded in Switzerland in 1980, the company has manufacturing, research and development sites in both North America and Europe and maintains a sales and service network in
52 countries. In 2004, Tecan achieved sales of CH 286.0 million (USD 230.6 million; EUR 185.7 million). Registered shares of Tecan Group are traded on the SWX Swiss Exchange (TK: TECN / Reuters: TECZn.S / Valor : 1210019).
Chief Executive Officer
Dr. Rudolf Eugster
Chief Financial Officer