EAG LABORATORIES acquired by EUROFINS SCIENTIFIC
Context
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 to the average currently observed in the Business Services sector (11.1x).
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.
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Target
EAG Laboratories is a leading global scientific services company providing high-end analytical testing and consulting solutions. The organization operates 21 laboratories across 18 locations worldwide, serving approximately 4,000 clients in over 50 countries. The entity specializes in three core strategic markets: Materials & Engineering Sciences, Agrochemicals, and Biopharmaceuticals. With a workforce of over 1,000 highly skilled scientists and technical staff, the group offers specialized testing that supports the full product lifecycle, from R&D and manufacturing to environmental assessment. The firm is recognized as one of the largest independent platforms in the TIC (Testing, Inspection, and Certification) sector in the United States, known for its deep technical expertise and state-of-the-art laboratory infrastructure.
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Historical Financials (USD)
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REFERENCES
Valuation range: EV 500M - 1.5b USD
Revenue range: 150M - 250M USD
EBITDA range: 50M - 100M USD
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Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).
Press release: view release
Target: eag laboratories
Acquirer: eurofins scientific