2nd Jan 2014 10:16
LONDON (Alliance News) - Cyprotex PLC said Thursday it has acquired the business and assets of CeeTox, a division of North American Science Associates Inc.
The specialist ADME-Tox contract research organisation has acquired CeeTox for GBP0.63 million, funded by internal cash resources, with a further consideration of 5% payable on specified net sales achieved in the next four years to a maximum of GBP3.1 million. The purchase is made by the group's US trading subsidiary, Apredica, LLC.
CeeTox is a contract research organisation which specialises in the provision of in vitro toxicological assays and screening data for the cosmetic and personal care industries. The company recorded sales of approximately GBP2.3 million in the year ended 30 September 2013 and made an operating loss of approximately GBP0.9 million.
NAMSA acquired the firm in 2005 and retains a license for applying CeeTox's in vitro toxicology expertise to medical device testing as part of the deal.
The company said it is likely to continue to operate the CeeTox business from its Kalamazoo location for a period of time prior to relocation of the business and assets to Cyprotex's US base in Watertown, MA.
Dr Anthony Baxter, CEO of Cyprotex, said, "The acquisition of CeeTox and its world-respected in vitro toxicology assays affords Cyprotex the opportunity to grow revenues significantly. Principally, it enables the Company to offer a more complete assay and screening service to the Cosmetics and Personal Care Industry, already an expanding customer segment, and will materially extend the Company's footprint in its established core Pharmaceutical and Agrochemical industry markets.
The firm said it expects the acquisition to be earnings neutral in the first year.
Cyprotex shares last traded at 7.625 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
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