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LEADING international laboratory and pharmaceutical equipment provider Sartorius has recently signed a contract to sell its Industrial Technologies Division (Intec) to Minebea Co. Ltd of Japan and its partner, the Development Bank of Japan Inc.
The transaction, which is subject to customary closing conditions, will be closed in the first quarter of 2015. The contractual parties have agreed on a 7.5 multiple on Intec’s 2014 operating EBITDA as the basis of the sales price, which will be fixed early next year.
Intec, the smallest division in the Sartorius Group, generated 102 million euros in sales revenue for fiscal 2013. Its underlying EBITDA margin attained 10.1% at year-end in the prior reporting period.
According to Sartorius CEO and chairman Joachim Kreuzburg, the sale of the Intec division to Minebea supports the company’s long-term strategy and focus on two core activities, bioprocess and laboratory.
Mr. Kreuzburg added, “Over the past years we have successfully positioned our Intec business as a specialist for industrial weighing and control technologies and have reached healthy profitability levels. Under Minebea’s roof, this business will now gain the critical mass needed to further extend its footprint internationally, an important prerequisite for further growth. I am convinced that Minebea is the perfect new owner for this business because of the complementarity of the product portfolios and the geographical footprint, and also because of their commitment to long-term strategies and premium products.”
Portfolio complements Minebea business unit
The Intec division, whose portfolio ranges platform silo scales to checkweighers and foreign body detection equipment, will complement Minebea’s Measurement Components business unit, which will absorb all Intec Division staff comprising about 700 people worldwide, including 350 based in the Hamburg, Aachen, and Bovenden facilities in Germany.
Synergies and advantages will include:
- Within the hopper measuring equipment area, the combined product portfolio will be potentially highly complementary as there is little overlap and will significantly expand the Minebea breadth of products;
- Various components where Minebea specializes in, the company can create further synergies proactively procuring these key components; and
- Foreign body and metal detection systems, which play a critical role in food health and safety management, will grow significantly across Asia including China, allowing Minebea to expand further in these markets.
Revenues from the Intec will add approximately JPY 15 billion to the current revenue of the Measuring Components Business, according to Minebea, to become the second largest player in the measuring components market globally.
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