02-Nov-2018 - Eurofins Scientific Services NV

Eurofins scientific acquires two North American companies

By acquiring EnvironeX Group Inc. in Canada and TestAmerica in the USA Eurofins expands its testing capabilities in the North American market.

EnvironeX Group Inc. - bioanalytical testing in Canada

Founded in 2005 by Marc Hamilton and supported by PCP since 2015, EnvironeX is a leading provider of Testing services to the Environment, AgriFood and Health & Pharmaceuticals sectors in Quebec, Canada. EnvironeX operates three laboratories and one service point, employs 275 staff and is expected to generate ca. CAD30m of revenues in 2018. EnvironeX has grown steadily over the last decade, servicing a broad customer base, including industrial clients, municipalities, engineering firms and environmental consultants in sectors such as Agrifood, Agriculture, Health and Pharmaceuticals.

EnvironeX will complement Eurofins Food and Environment Testing footprint in Canada, which employs over 200 staff and operates four laboratories and three service centres. The additional staff, locations, coverage and technical expertise is in line with the Group’s commitment to providing its clients a world class level of service in all main countries where they operate.

TestAmerica - group of environmental testing labs in th USA

TestAmerica is the leading environmental testing laboratory group in the USA, delivering innovative technical expertise and analytical testing services to its clients for many years. TestAmerica operates an integrated network of 24 full service testing laboratories and 40 service centres throughout the USA. TestAmerica should generate revenues of over US$230 million in 2018 and employs over 2,000 staff. The acquisition price is US$175 million on a cash free debt free basis. As Eurofins and TestAmerica have a largely complementary geographic footprint and technical offering, restructuring of either business is expected to be minimal, the focus being on further enhancement of consolidated service offering to the market and scale economies with respect to rare tests, R&D, operational costs and operational optimization/harmonization/specialization of sites to improve efficiencies.

This acquisition significantly strengthens Eurofins’ environment testing offering in the USA, which is the largest environment testing market in the world. TestAmerica will expand the range of services offered to clients with over 45,000 accredited methods managed over a combined listing of 449 State or Federal accreditation programs/licenses (e.g., USDA, US Fish & Wildlife) as well as the technical expertise and capacity offered to clients thanks to its industry leading proprietary laboratory information management system. It will also enable Eurofins to access its large customer base, serving a high number of Fortune 500 companies.

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