EKF in $10m deal for US Covid test lab
POINT-OF-CARE business EKF Diagnostics has agreed a $10m acquisition of American PCR Covid-testing laboratory firm Advanced Diagnostic Laboratory (ADL Health).
The deal, payable in shares in Alternative Investment Market listed EKF, will provide the Penarth-based firm with new testing capacity, complementing its test kit manufacturing and point-of-care diagnostic instruments.
The deal is expected to be completed over the next few weeks with filing of a deal certificate with the Secretary of State of Texas.
ADL Health’s laboratory covers the fields of clinical, forensic and microbiological tests.
The business has medical Laboratory accreditation giving it recognition in 44 countries and reflecting.
Using its expertise in Polymerase Chain Reaction (PCR) testing, it also provides Covid testing needs for dozens of Fortune 500 companies and government agencies.
In addition it is expanding its range of testing capabilities across a broader suite of healthcare applications.
Under EKF’s ownership, further investment is anticipated to support the deployment of additional equipment and personnel in order to service customer demand.
Mike Salter, president of EKF Diagnostics’ Americas and chief executive designate of EKF, said: “We are delighted to have agreed terms for the acquisition of ADL Health and believe this represents a highly attractive and earnings accretive transaction.
“Strategically, this is an excellent move for us as it positions EKF as a leading provider of diagnostic products and services, including a testing offering that our industry partners have been looking for us to provide.
“The ability to offer testing for a wide range of diseases, combined with our existing point-of-care device, reagent, sample collection, kitting and manufacturing services, positions us as a single provider able to encompass all products and services from ‘sample-to-result’.
“It is also reassuring to EKF’s shareholders that the vendors of ADL Health have been willing to accept all of the up-front consideration in shares, with further paper available as part of the earnout structure.
“This reflects their confidence in our shared vision for the future of the enlarged business and EKF’s revised strategy for accelerated growth.”
Stanley Crawford III, chief operating officer and founder of Advanced Diagnostic Laboratory added: “We are excited to become a member of the EKF Diagnostics family.
“The combination of a premier CLIA (Clinical Laboratory Improvement Amendments) lab with a powerhouse such as EKF not only creates a whole new capability for the group but also provides a compelling opportunities to drive growth by meeting more of our clients’ needs.”