Charles River to acquire Citoxlab, M&A ‘a top priority’
The proposed transaction is expected to close in the second quarter of 2019, at which time Citoxlab would join Charles River’s discovery and safety assessment (DSA) business segment.
Citoxlab is a non-clinical contract research organization (CRO) with nine sites in six countries across Europe and North America. Its global capacity exceeds more than 700,000 square feet.
“Following the proposed acquisition of Citoxlab, we believe our safety assessment portfolio would have the ability to fully support our long-term organic growth aspirations for the business,” Charles River CEO Jim Foster told us.
“However, M&A remains a top priority for our growth strategy, and we intend to remain acquisitive over the longer term to enhance the scientific capabilities and scale of our other businesses.”
Citoxlab provides a range of early-stage services which Foster said would strengthen Charles River’s existing capabilities in four key areas: General and specialty toxicology, preclinical medical device testing services, non-regulated discovery solutions, and genomics research.
The proposed acquisition also would strengthen the CRO’s presence in growing end markets, deepen its geographic footprint, and augment its scientific capabilities, he said, calling the deal “a compelling value proposition for both clients and shareholders.”
The acquisition is expected to add $115 to $130m to Charles River’s 2019 consolidated revenue and approximately $200m to 2020 consolidated revenue.
