Mesa Laboratories’ subsidiary Mesa France is acquiring assets and liabilities of two European distributors.
These acquisitions involved CoaChrom Diagnostica of Austria and bioTRADING Benelux of the Netherlands. Both of these companies were distributors of Mesa’s biological indicator (BI) products.
Together, acquisition of the BI distribution rights 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.
BIs 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. CoaChrom Diagnostica and bioTRADING Benelux 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 from its 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.
President and CEO of Mesa John J. Sullivan said: "These two acquisitions complete the build-out of Mesa’s direct BI sales efforts in western Europe, which was started with the acquisition of Mesa France (formerly Amilabo) in April, 2014.
"In total, we have purchased distribution rights from twelve of our former BI distributors and Mesa now sells directly into our target pharmaceutical and medical device markets throughout much of Western Europe. Selling directly allows Mesa to capture additional margin and better understand the needs of our customers, enabling us to grow our European BI business more effectively."