Korean GP backs $1.5b buyout of US-listed Meridian Bioscience
SJL Partners, a Korea-based private equity firm that specialises in cross-border transactions, has teamed up with domestic in vitro diagnostics business SD Biosensor to acquire US-listed peer Meridian Bioscience for USD 1.53bn.
The buyers are acquiring all shares in Meridian for USD 34.00 apiece, a 32% premium to the closing price on March 18, the day before the first offer was submitted, according to a filing. Once the deal closes – it still requires shareholder and various regulatory approvals – SD Biosensor will own 60% of the company with SJL holding 40%.
SJL was established in 2017 by Steve Lim, who was previously head of Korea at CVC Capital Partners and before that served as Korea CEO at J.P. Morgan and led the Korea investment banking team.
The firm's portfolio includes US-based chemicals manufacturers Momentive Performance Materials and Momentive Technologies and UK battery components maker Nexeon. The strategic partners for these deals were KCC Corporation, Wonik QnC, and SKC, respectively. Two earlier investments – in drug maker Celltrion Holdings and fashion player Vigevano – were solo domestic projects.
Meridian, which manufacturers a range of diagnostic products, has benefited from COVID-19. Revenue rose 25% year-on-year in the 12 months ended September 2021 to reach USD 317.9m. The life sciences division contributed USD 190.1m, up 43%, with immunological and molecular COVID-19 tests responsible for USD 111.9m. Net profit was up 55% at USD 71.4m.
CEO Jack Kenny said that the SD Biosensor-SJL tie-up would help the company navigate the decline in COVID-19 testing demand and develop new products. For SD Biosensor, which generated KRW 2.9trn (USD 2.3bn) in revenue and USD 822m in net profit last year, the acquisition accelerates its planned entry into the US in-vitro diagnostics market.
The company, which already has factories in India, Indonesia, and Brazil, as well as Korea, supplies diagnostic products to 126 countries through 517 designated dealers. It has created home testing kits for COVID-19 and has previously worked on antigen tests for MERS, Ebola, and Zika.
"The combination of Meridian's product commercialisation team with deep expertise in the regulated US market, SD Biosensor's broad product portfolio and scale manufacturing expertise, and SJL's execution experience and partnership model will further position the company for long-term success," said Lim.
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