Celera to Acquire Berkeley HeartLab
Complete the form below to unlock access to ALL audio articles.
Celera Group and Berkeley HeartLab, Inc. (BHL) announced they have signed a definitive agreement whereby Celera will acquire BHL for approximately $195 million in cash, subject to reduction for certain BHL transaction costs.
BHL is a cardiovascular healthcare company with a broad portfolio of CLIA certified tests and disease management services focused on the secondary prevention market. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close during the second quarter of Celera’s fiscal 2008.
BHL participates in the estimated $7.8 billion U.S. market for personalized cardiovascular disease management which is currently growing more than 10 percent annually. BHL’s annual revenues are expected to exceed $85 million in calendar 2007 with solid double digit growth over calendar 2006. BHL turned profitable in calendar 2004, and since then the company has been improving its EBIT margins; in calendar 2006 the company recorded EBIT margins in excess of 17 percent.
Upon completion of the transaction, BHL will be operated as a business unit of Celera. Celera currently anticipates the acquisition will be accretive to earnings in the second half of fiscal 2008, excluding the impact of acquisition-related intangible amortization and transaction and integration expenses. The exact amount of accretion will only be known after the completion of an analysis of the allocation of the purchase price.
“This acquisition provides Celera with a commercial infrastructure to drive adoption of many of its emerging new molecular diagnostic tests that predict risk and individualize treatment in cardiovascular disease,” said Kathy Ordonez, president of Celera.
“Berkeley HeartLab has an outstanding medical and scientific reputation, and a strong track record of growth, by providing testing and other services to improve clinical outcomes for patients with cardiovascular disease. Celera’s genetic markers that are intended to identify people at risk for early heart attacks, stroke and blood clots and optimize therapy with cholesterol-lowering drugs, aspirin, anti-coagulants and other cardiovascular drugs should augment Berkeley HeartLab’s current disease management offerings to patients.”
