Eurofins Scientific has signed an agreement to acquire 100% of EAG Laboratories from the private equity firm Odyssey Investment Partners. This acquisition represents one of the three largest transactions in Eurofins' history and significantly accelerates its 2020 growth roadmap by adding a new, highly profitable business line in the US TIC market. The strategic rationale for the deal is the perfect geographic and service complementarity between the two groups. EAG reinforces Eurofins' global offering in the strategic biopharmaceutical and agrochemical markets while providing a dominant entry point into materials and engineering sciences. The acquisition is expected to be highly accretive, with analysts projecting a 13% boost to EPS by 2018. Eurofins maintains a healthy balance sheet following the deal, with a net debt/EBITDA ratio estimated at 1.48x, allowing for continued expansion. No restructuring or consolidation of the existing laboratory network is planned.

EAG LABORATORIES, which reported an EBITDA margin of LOGIN in 2017, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN premium to the 10.9x average currently observed in the Business Services sector.

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.