Eurofins signs agreement to acquire Experchem Laboratories, Inc.
Eurofins Scientific announced that it has signed an agreement to acquire Experchem Laboratories, Inc. (Experchem), a comprehensive analytical testing service provider, with competence in nutraceuticals testing. The transaction is expected to close in 30 days subject to customary closing conditions.
Founded in 1981, Experchem employs about 95 staff at its laboratory in Toronto, and generates revenues in excess of CA$ 10m. Certified by both Health Canada and the Food and Drug Administration (FDA) in the US, Experchem provides comprehensive testing solutions primarily to pharmaceutical and nutraceutical industries, with significant expertise in natural health products (NHPs), the Canadian equivalent of nutraceuticals, as well as in functional foods and beverages.
The company provides full testing and regulatory services to ensure that clients’ products are fully compliant with NHP regulations, and is ideally positioned for growth, given that functional food and NHP are Canada's fastest growing agriculture and agri-food sectors. Furthermore, whilst Canada currently has more stringent NHP regulations compared to the US, reports indicate that the FDA is increasingly likely to strengthen nutraceuticals regulations. Experchem’s expertise, together with Eurofins’ long-established neutracuticals testing competence center in Petaluma, California, should therefore reinforce Eurofins’ capabilities to benefit from growth in US nutraceuticals testing from increased regulations, and achieve leadership in this attractive market.
In addition, Experchem also conducts full cGMP quality control (QC) testing services for over the counter (OTC) drugs, providing a platform for Eurofins to extend its current leading pharmaceutical products testing position into Canada.
Comment from Dr. Gilles Martin, Eurofins CEO: “The acquisition of Experchem facilitates Eurofins’ expansion into Canada, as well as reinforces our capabilities in key niche markets such as nutraceuticals testing, and our leadership in biopharmaceutical products quality control. In return, we look forward to providing Experchem access to the full capabilities of the Eurofins Group and our client relationships to further strengthen their position in the domestic market.”
Other news from the department business & finance
