IDEXX Laboratories Acquires the RADIL Reference Laboratory from the University of Missouri
WESTBROOK, Maine, November 07, 2011—IDEXX Laboratories, Inc. (NASDAQ: IDXX), today announced that it has acquired the research and diagnostic laboratory (RADIL) business of the College of Veterinary Medicine from the University of Missouri for $43 million in cash. Based in Columbia, Missouri, RADIL provides health monitoring and diagnostic testing services to bioresearch customers.
"The bioresearch market is an excellent strategic fit for IDEXX, allowing us to leverage our expertise in veterinary diagnostics, as well as our integrated offering of reference laboratory and in-clinic testing solutions," commented Jonathan Ayers, Chairman and Chief Executive Officer. "The acquisition of RADIL, with its international reputation, track record of innovation, and solid relationships with key bioresearch customers, will create a strong foundation for our further participation in this market."
RADIL serves the biomedical research community with veterinary laboratory diagnostics including serology, pathology, molecular diagnostics, microbiology, and parasitology. All RADIL employees will join IDEXX and continue operations in Columbia.
"The acquisition of RADIL represents a natural extension of our business strategy and aligns well with our overall corporate purpose—to create long-term value for our shareholders while enhancing the health and well-being of pets, people and livestock," added Ayers.
IDEXX expects future growth of the RADIL business to be augmented by the opportunity to leverage IDEXX technologies and international expansion supported by IDEXX's global infrastructure.
The acquisition of RADIL by IDEXX is treated as a purchase of assets from a tax perspective. In 2012, the acquisition is expected to contribute approximately $12 million of revenue and to be approximately neutral to fully diluted earnings per share. This transaction was not included in the initial guidance for 2012 provided at the time of the Company's most recent earnings release on October 21, 2011. The acquisition is not expected to have a material impact on IDEXX's financial results in 2011.
About IDEXX Laboratories, Inc.
IDEXX Laboratories, Inc. is a leader in pet healthcare innovation, serving practicing veterinarians around the world with a broad range of diagnostic and information technology-based products and services. IDEXX products enhance the ability of veterinarians to provide advanced medical care, improve staff efficiency and build more economically successful practices. IDEXX is also a worldwide leader in providing diagnostic tests and information for livestock and poultry and tests for the quality and safety of water and milk. Headquartered in Maine, IDEXX Laboratories employs more than 4,900 people and offers products to customers in over 100 countries.
Note Regarding Forward-Looking Statements
This press release contains statements about the Company's business prospects and estimates of the Company's financial results for future periods that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as "expects," "may," "anticipates," "intends," "would," "will," "plans," "believes," "estimates," "should," and similar words and expressions. These statements are based on management's expectations of future events as of the date of this press release, and the Company assumes no obligation to update any forward-looking statements as a result of new information or future events or developments. Actual results could differ materially from management's expectations. Factors that could cause or contribute to such differences include the following: the Company's ability to develop, manufacture, introduce and market new products and enhancements to existing products; the Company's ability to achieve economies of scale in its worldwide network of laboratories; the impact of a weak economy on demand for the Company's products and services; the effectiveness of the Company's sales and marketing activities; the Company's ability to identify acquisition opportunities, complete acquisitions and integrate acquired businesses; disruptions, shortages or pricing changes that affect the Company's purchases of products and materials from third parties, including from sole source suppliers; the Company's ability to manufacture complex biologic products; the effect of government regulation on the Company's business, including government decisions about whether and when to approve the Company's products and decisions regarding labeling, manufacturing and marketing products; the Company's ability to obtain patent and other intellectual property protection for its products, successfully enforce its intellectual property rights and defend itself against third party claims against the Company; the impact of distributor purchasing decisions on sales of the Company's products that are sold through distribution; the impact of competition, technological change, and veterinary hospital consolidation on the markets for the Company's products; changes or trends in veterinary medicine that affect the rate of use of the Company's products and services by veterinarians; the impact of the Company's inexperience in the human point-of-care market; the effects of operations outside the U.S., including from currency fluctuations, different regulatory, political and economic conditions, and different market conditions; the effects of interruptions to the Company's operations due to natural disasters or system failures; the loss of key employees; class action litigation due to stock price volatility; the effect on the Company's stock price if quarterly or annual operations results do not meet expectations of market analysts or investors in future periods; and potential exposures related to our worldwide provision for income taxes. A further description of these and other factors can be found in the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2011, in the section captioned "Risk Factors."
Chief Financial Officer