Further details on the acquisition of Fred Baker Scientific, a UK leading supplier of specialist microbiology and life science products
Biotrace International announces that it has acquired Fred Baker Scientific (FBS) for an initial consideration of £1.47 million in cash.
Based in Runcorn, UK, FBS develops and manufactures a range of pre-prepared culture media for the pharmaceutical industry and is a leading supplier of specialist microbiology and life science products, including the group's Ruskinn product range.
This acquisition, together with Biotrace's embryonic healthcare business (Ruskinn Technology and Toucan Technologies) has rapidly established a £4m turnover healthcare business supplying specialist microbiology and life science products to the pharmaceutical, cosmetics and toiletries, public health and hospital laboratories and medical research markets.
Over two thirds of FBS turnover during 2001 was derived from major UK based pharmaceutical companies, 70% of which is obtained from long-term contracts for repeat consumable items.
The customer base also includes public health laboratories and hospitals, together with research and university institutions.
A large and growing proportion of sales are from the recently introduced range of pre-prepared culture media, used for environmental monitoring in the pharmaceutical industry.
A state of the art manufacturing facility produces and supplies products to GMP standards and is the only facility in Europe to be accredited by the Pharmaceutical Suppliers Code of Practice.
A number of well-known pharmaceutical companies purchase products including AstraZeneca, which regards FBS as a key supplier of these and other products used in its manufacturing and R and D facilities. The use of pre-prepared media is gaining momentum as it provides a convenient and quality assured alternative to in-house prepared media.
FBS sales of pre-prepared media grew to £1.4 million in 2001.
There is considerable potential to expand sales not only in the UK but also worldwide to provide multinational pharmaceutical companies with consistent products.
Additionally, FBS has developed a special air sampler, which is used extensively by pharmaceutical companies in combination with pre-prepared media to monitor environmental contamination in production facilities. Biotrace will complete the development of the unit and manufacture it within the group.
The unit, which will sell at approximately £4000, is expected to be on the market in the first half of next year.
FBS had sales of £3.37 million and made a pre-tax profit of £0.18 million in 2001.
FBS had net assets of £0.68 million, including a freehold property, recently re-valued at £0.4 million and had borrowings of £0.11 million at the date of acquisition.
The consideration for FBS has been satisfied by an initial cash payment of £1.47 million, with the potential to pay an additional cash sum of up to £1.08 million by 2005 depending on meeting certain performance milestones.
FBS's founder, Fred Baker, has retired, however, his fellow co-founders John Cobb and Peter Roberts will remain as directors of FBS and continue to run the business.
It is expected that the merger will lead to a restructuring of the combined businesses.
Ian Johnson, chief executive of Biotrace, commented: "FBS has developed a substantial UK business within the pharmaceutical sector and I look forward to building on its achievements and to establishing sales of pre-prepared culture media and the new air sampler throughout the world, where significant opportunities exist.
The acquisition, which is immediately earnings enhancing, will further strengthen the company's position as a leading supplier of innovative microbiology products and thus expands our healthcare business.
This acquisition will have enabled the group to almost double its size in two years."
