Invitrogen Corporation to Acquire BioReliance Corp. for 5.22 Times Revenue

Weekly Corporate Growth Report, Jan 5, 2004

The Deal: Invitrogen Corporation has announced its intent to acquire BioReliance Corporation a cash tender offer of $48 per share. In addition, Invitrogen will assume about $70 million in BioReliance debt, bringing the value of the deal to approximately $454 million. The transaction has been approved by the boards of both companies, but still requires approvals from shareholders and regulatory authorities. The deal is expected to close in the first quarter of 2004.

Discussion: BioReliance provides testing, development, and manufacturing services to biotechnology and pharmaceutical companies. The company has facilities in Germany, the United Kingdom, and the United States. BioReliance clients include US government and the National Institute of Environmental Health Sciences.

Invitrogen makes kits that simplify and accelerate genetic processes such as cloning, expression, and analysis. The company also sells cell and tissue culture media, reagents, and other research supplies. Invitrogen clients are primarily corporate, academic, and government research facilities. The company has customers in Europe, North America, and Asia.

The acquisition is expected to add about 19 cents per share to Invitrogen's 2004 earnings.