Charles River Laboratories to Acquire WIL Research for $585 Million
Charles River Laboratories International, Inc., a contract research organization, it has agreed to acquire WIL Research for approximately $585 million in cash, subject to customary closing adjustments. WIL Research is a provider of safety assessment and contract development and manufacturing (CDMO) services to biopharmaceutical, agricultural, and industrial chemical companies worldwide. In 2015, WIL Research is expected to report annual revenue of approximately $215 million.
Charles River Laboratories outlined several reasons for the acquisition. The first is to build global scale. WIL Research will provide safety assessment infrastructure to support Charles River's current demand and future growth needs, with strategically located facilities to address global client requirements, including in continental Europe. In addition, the acquisition will strengthen Charles River's existing service offerings in different geographic regions.
The move also expands Charles River’s client base. The acquisition aligns with Charles River's strategy to expand its biotechnology client base, its fastest-growing market segment. WIL WIL Research will also expand Charles River's existing business that provides services for agricultural and industrial chemical clients.
The deal also diversifies Charles River’s portfolio. The acquisition of WIL Research will diversify Charles River's service portfolio by adding new specialty services in safety assessment and bioanalysis, as well as CDMO services. The broader portfolio will enable Charles River to increase the support it provides to biopharmaceutical clients worldwide across the early-stage drug research pipeline and expands the opportunities to partner with these clients, according to the company.
The transaction is expected to close early in the second quarter of 2016, subject to regulatory approvals and customary closing conditions. Based on the anticipated timing of the close, the acquisition is expected to add $150 million to $170 million to Charles River's 2016 consolidated revenue, and $240 million to $250 million to 2017 consolidated revenues.
Source: Charles River Laboratories