Sartorius sells Intec to focus on bioprocessing and lab
The deal will see Tokyo-based Japanese Minebea buy Sartorius Intec for a “7.5 multiple on the division’s 2014 operating EBITDA.”
According to an interim statement Sartorius released in October, Intec’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the nine months to the end of September were €7.3m ($8.6m). In the full year 2013, the division saw EBITDA of €7.8m.
In the statement, Sartorius said Intec is on track to achieve year-on-year EBITDA growth at “the lower end of the growth range of 1% to 4% already announced.”
If correct this would mean Minebea and partner, the development bank of Japan, can expect to pay around €60m for Intec.
Sartorius CEO Joachim Kreuzburg said the divestiture is part of an ongoing effort to refocus the firm’s business.
“By selling our Intec Division to Minebea, we are realizing an important cornerstone of our long-term strategy and focus on our two core activities in Bioprocess and Laboratory. Over the past years we have successfully positioned our Intec business as a specialist for industrial weighing and control technologies and have reached healthy profitability levels.”
Intec operates at sites in Europe, China and India and employs 700 people, all of whom will be taken on by Minebea according to Sartorius. Principle operations are focused at facilities in Aachen and Bovenden in Germany.
Minbea said the deal will help expand its measuring components business, citing the Intec production facilities and sales force in Europe, China and North America as key motivations for the acquisition.
The Tokyo firm added that the merger will “double revenue in the industrial measurement industry and by utilizing the two companies strengths,” adding that “we anticipate to be able to create synergies generating additional growth and enhance profitability.”
