Charles River bags a rival CRO player in $800M MPI Research buyout
The ongoing consolidation of the CRO business is continuing this morning as Charles River Laboratories $CRL wraps up an $800 million cash deal to acquire MPI Research, one of its biggest competitors in the preclinical sphere.
The early-stage specialists at Charles River saw a sweet lineup of discovery services at the 25-year-old MPI that fits with its own mission in the industry.
Charles River is a buyer in the CRO world. Just weeks ago it acquired KWS BioTest and its in vivo and in vitro discovery services for £15 million (roughly $20 million) up front. And it’s been wracking up a long string of acquisitions over the past few years as top players continue to carve out market share.
Shareholders were told to expect a $0.25 per share non-GAAP earnings boost in 2018 and approximately $0.60 in 2019. Charles River has been seeing a growing top and bottom line. For the first nine months of 2017 the CRO reported $1.38 billion in revenue, compared to $1.21 billion for the same period in 2016. And net income jumped from $111 million to $154 million, an increase of 38%.
And the Wilmington, MA-based outsourcing group liked the people and facilities they’ll be joining with now.
“In addition to meeting our disciplined acquisition criteria, MPI is an exceptional strategic fit for Charles River because it incorporates the key attributes we require in an acquisition: access to growing end markets, high-quality services, scientific expertise, and complementary capabilities,” says Charles River CEO James Foster. “MPI’S one-million-square-foot, single-site facility in Michigan will provide needed capacity to meet current and future demand.”