WILMINGTON, Mass.--(BUSINESS WIRE)--Charles River Laboratories International, Inc. (NYSE: CRL) today announced that it has acquired KWS BioTest, a leading contract research organization (CRO) specializing in in vitro and in vivo discovery testing services for immuno-oncology and inflammatory and infectious diseases. The addition of KWS enhances Charles River’s discovery expertise, with complementary offerings that provide our clients with additional tools in the active therapeutic research areas of oncology and immunology.
James C. Foster, Chairman, President and Chief Executive Officer of Charles River, said, “The addition of KWS strategically expands Charles River’s existing discovery capabilities in the field of immunology, which is critical given the importance of new therapies which harness the human immune system. In addition to enhancing our position as the premier single-source provider for a broad portfolio of discovery services, KWS increases our ability to support clients’ early-stage drug research in critical therapeutic areas, and expands our geographic footprint in the United Kingdom.”
The purchase price was approximately £15 million in cash (approximately $20 million based on current exchange rates), subject to certain post-closing adjustments. In addition to the initial purchase price, the transaction includes a potential additional payment of up to £3 million based on future performance (approximately $4 million based on current exchange rates). The transaction is not expected to be material to 2018 GAAP or non-GAAP results from operations.
Caution Concerning Forward-Looking Statements
This
news release includes forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as “anticipate,”
“believe,” “expect,” “will,” “may,” “estimate,” “plan,” “outlook,” and
“project,” and other similar expressions that predict or indicate future
events or trends or that are not statements of historical matters.
Forward-looking statements include statements in this press release
regarding the acquisition of KWS BioTest and Charles River’s
expectations with respect to the impact of KWS BioTest on the Company
and its product and service offerings; as well as Charles River’s future
growth in the areas of oncology, immunology, inflammation, or infectious
disease drug research. Forward-looking statements are based on Charles
River’s current expectations and beliefs, and involve a number of risks
and uncertainties that are difficult to predict and that could cause
actual results to differ materially from those stated or implied by the
forward-looking statements. A further description of these risks,
uncertainties, and other matters can be found in the Risk Factors
detailed in Charles River's Annual Report on Form 10-K as filed on
February 14, 2017, as well as other filings we make with the Securities
and Exchange Commission. Because forward-looking statements involve
risks and uncertainties, actual results and events may differ materially
from results and events currently expected by Charles River, and Charles
River assumes no obligation and expressly disclaims any duty to update
information contained in this news release except as required by law.
About Charles River
Charles River provides essential products and services to help pharmaceutical and biotechnology companies, government agencies and leading academic institutions around the globe accelerate their research and drug development efforts. Our dedicated employees are focused on providing clients with exactly what they need to improve and expedite the discovery, early-stage development and safe manufacture of new therapies for the patients who need them. To learn more about our unique portfolio and breadth of services, visit www.criver.com.
