Commonwealth Biotechnologies Completes Acquisition of Tripos Discovery Research Ltd
News Jun 07, 2007
Commonwealth Biotechnologies, Inc (CBI) has announced that it has completed the acquisition of all of the outstanding capital stock of Tripos Discovery Research Limited, an English limited company (TDR).
TDR is said to be a world leader in medicinal and combinatorial chemistry and provides products and services that are complementary to CBI's existing offerings in biologics and custom peptides.
The TDR acquisition provides CBI with a strategic production and sales and marketing site in the United Kingdom and is designed to accelerate the CBI's revenue and earnings growth. On a pro-forma basis, the acquisition of TDR represents an increase in CBI's 2006 revenues to $16.4 million and upon closing increases CBI's cash position to $5.36 million.
CBI's CEO, Dr Paul D'Sylva said, "CBI's acquisition of TDR is in line with our company's strategy to expand its drug discovery and development services in the field of pre-clinical chemistry and to extend the sale of its full suite of products and services into Europe. With the additional technical and commercial capabilities and resources that TDR brings, CBI anticipates that it will be able to grow a powerful, robust and diverse drug discovery services franchise servicing the growing global drug discovery market. Immediate cost and revenue synergies are expected from this transaction, which will accelerate CBI's continued growth."
Under the terms of the transaction, which was unanimously approved by CBI's Board of Directors, CBI has acquired all of the outstanding capital stock of TDR for an up-front payment of $350,000 followed by payments of up to $1.8 million from TDR receivables and billings.
Concurrent with this transaction, TDR is entering into a sale-leaseback transaction with the South West of England Regional Development Authority (SWERDA) for a 12 year lease of the facilities in Bude renewable every 3 years, and has been released from grant repayment obligations with the English Department of Trade and Industry and various inter-company advances from TDR's former parent organization, Tripos, Inc., a Utah corporation.
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