EKF Diagnostics acquires diagnostics business

12th Mar 2014 10:15

AIM-listed EKF Diagnostics Holdings, a point-of-care diagnostics business, has acquired Separation Technology, which manufactures in-vitro diagnostics (IVD) devices for the haematology testing market.The $4.0m (around £2.4m) cash consideration will be satisfied out of current debt facilities. The acquisition is expected to be earnings enhancing in 2014.STI's revenue for 2013 was approximately $4.0m and earnings before interest, tax, depreciation and amortisation were approximately $0.5m. At the year-end its net assets totalled in the region of $1.0m. The firm develops, manufactures and markets specialty IVD devices for the haematology testing market and also has an in-house engineering capability, including product design, production support and new product development.Its revenues are currently concentrated in the US market (92% in 2013), however the business has sought to expand its offering into markets outside of the US and has recently registered products in Brazil, as well as Kazakhstan, Russia and Thailand. STI's primary instrument is the ultrasound based UltraCrit haematocrit measurement device, which is FDA cleared for blood donor screening. EKF Chief Executive, Julian Baines, said: "The acquisition of STI is a great natural fit with our existing Point-of-care business, and UltraCrit provides us with a leading product for measuring haematocrit during blood donor screening with huge potential. "The acquisition has been funded from our own resources and we expect it to be earnings enhancing from day one; so I am very confident that this acquisition represents a good value opportunity for EKF shareholders."NR