Eurofins Scientific Purchases 27% of GeneScan Europe AG

18-Feb-2003

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Eurofins signed yesterday a friendly offer agreement with the management board of GeneScan Europe AG, Freiburg (Germany), with the objective of taking-over the company. The offer price for each GeneScan share will be EUR 1.10. This corresponds to a premium of 48.6% compared to last Fridays closing share price (Xetra/Frankfurt: EUR 0.74). Furthermore, Eurofins has signed agreements with TFG and several other shareholders to purchase a total of 27% of GeneScan's shares.

The reflection over this take-over has been facilitated, after the management of GeneScan has proposed a full restructuring of the overall business activities one month ago. This restructuring puts the focus on the GMO and chip based analysis service business. Therefore, the company fits well with the business portfolio of the Eurofins Group. While the restructuring costs and payment of GeneScan's contractual obligations will - according to a GeneScan press release of January 8, 2003 - consume the larger part of GeneScan's cash reserves, the management is confident that this refocusing can be achieved as planned and lead to a viable business.

Eurofins believes, that the take-over will enhance the chances of success of the planned turn-around of GeneScan, due to synergies that may result of a complete integration into the Eurofins Group. Eurofins' experience of restructuring situations, its international network of laboratories, its complete portfolio of assays as well as the commitment of the management of GeneScan may indeed facilitate a fast and drastic cost reduction and a concerted international sales effort, required for a successful turn-around.

After the restructuring, in order for the business to be more cost effective in a highly competitive market, it is planned that GeneScan's four sites will be integrated as a GMO testing business unit into Eurofins' worldwide network of around 50 laboratories, so as to benefit from the Group's cross-selling possibilities. Furthermore, the reduced and refocused biochip service business of GeneScan will supplement Eurofins' portfolio in diagnostics and toxicology. Following a successful completion of the offer it is planned to review the possibility of a delisting of the GeneScan shares from the Frankfurt stock exchange.

https://www.chemeurope.com/en/news/20446/eurofins-scientific-purchases-27-of-genescan-europe-ag.html