Mesa Laboratories,
Mesa Laboratories,
Mesa Laboratories,
Mesa Laboratories,
Mesa Laboratories,
Mesa Laboratories,
- Mesa Laboratories,
- Mesa Laboratories,
Inc., a global leader in the design and manufacturing of life science tools and critical quality control solutions, today announced the completed acquisition of GKE-GmbH’s sterilization indicators business and its accredited, independent testing lab SAL GmbH. Additionally, Mesa has entered into a definitive agreement to purchase GKE’s Chinese sales entity, Beijing GKE Science & Technology Co. LTD (“GKE China”). The total purchase price for the acquisition of the three entities is €85M (of which €5M is associated with GKE China), which is subject to customary purchase price adjustments and holdbacks. Collectively these three entities are referred to as “GKE”. The all-cash transactions were or will be funded with proceeds from our credit facility and cash on hand. The GKE China transaction is expected to be completed during our third quarter ending December 31, 2023, and is subject to customary conditions, including receipt of applicable Chinese regulatory approvals.
GKE is headquartered in Waldems, Germany and is engaged in the business of developing concepts for monitoring, cleaning, and sterilization processes as well as the development, manufacture, validation, and distribution of biological, chemical, and cleaning process indicators. The Waldems GKE facility will serve as Mesa’s center of excellence for the chemical indicator and healthcare business. The three GKE entities are expected to add €19-€20 million of revenues during the first 12 months of complete ownership and deliver mid-single digit organic revenues growth over the next several years. Excluding the impact of purchase accounting and integration expenses, we expect gross profit as a percentage of revenues to be in line with our existing SDC business and adjusted operating income1 as a percentage of revenues to approach 37%-40% for the same first 12 months of complete ownership.
Additionally, Mesa has entered into a definitive agreement to purchase GKE’s Chinese sales entity, Beijing GKE Science & Technology Co. LTD (“GKE China”).
