Warnex Concludes Acquisition of MDS Pharma Services' Blainville - Pharmaceutics Business
Date Posted: Friday, September 01, 2006
Warnex Inc. has announced that its wholly-owned subsidiary Warnex Analytical Services Inc. has concluded the acquisition of the MDS Pharma Services pharmaceutics business located in Blainville, Quebec, following an agreement in principle announced on July 18, 2006.
The purchase price of $1,950,112.23 was paid in cash. Concurrent to the acquisition, Warnex signed a 12-month lease for the Blainville facilities, with an option to renew for 6 months.
The acquisition will operate as Neopharm Laboratories, a division of Warnex Analytical Services.
Warnex expects to bring the Blainville pharmaceutics operations, which reported $6.7 million in annual revenue and incurred a loss in its last fiscal year, in line with the historically profitable performance of its existing analytical business unit.
The acquisition, which effectively doubles the Company's analytical revenue, is expected to be EBITDA positive within 12 months.
"This acquisition, for a number of reasons, made sound, strategic rationale," said Mark Busgang, President and CEO of Warnex.
"First, we are already well established in this business segment and this acquisition gave us a one time opportunity to leverage our success into a dominant market position in our regional market of Quebec."
"As well, this acquisition gives us the scale to reach beyond our regional market and we will now focus on more aggressive international growth."
Further Information: http://www.warnex.ca
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