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Trajan to acquire US lab consumables business

Manufacturing News

Trajan Scientific and Medical has announced it will acquire Kentucky-based analytical consumables business Chromatography Research Supplies for $US 43.3 million ($AUD 61.9 million.)

In an announcement on Friday following a trading halt, Trajan told the ASX that CRS would expand its portfolio of products, particularly for gas chromatography, and expand its production real estate in the US.

CRS is a maker of analytical consumables – “electronic and manual crimping tools, gas filters, ferrules, injection port septa, and more recently, well plates and sealing mats” – and has supplied Trajan since 2013, when Trajan acquired SGE Analytical.

“Our market leadership in gas chromatography is enhanced with the addition of septa and ferrules  components, as well as introducing a broader portfolio of products in other areas of the analytical workflow that build on our automation business,” said Stephen Tomisich, CEO and Managing Director of Trajan on Friday.

Trajan currently operates seven manufacturing sites across the US, Australia, Europe and Penang, Malaysia.

It is the latest in a series of acquisitions since Trajan listed on the ASX in June 2021, following lab automation business Axel Semrau in November 2021, micro-sampling business Neoteryx in December 2021, LEAP PAL Parts and Consumables the same month, and strategic investment in consumer health monitoring with Humankind Ventures (trading as Forth) in November 2021.

The company said CRS would deliver expected revenues of $US 14.1 million ($AUD 20.1 million) next financial year, and EBITDA of $US 4.2 million ($AUD 6.0 million) as well as synergies.

The purchase of the American company would be funded through a fully underwritten $AUD 29.7 million share placement to “eligible  institutional, sophisticated, and professional investors,” an acquisition debt facility from HSBC of $AUD 20.0 million, and $AUD 13.4 million from existing cash. 

The news followed last week’s announcement that Trajan is on track to achieve a 40 per cent increase in sales in the current year.

Picture: Trajan

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