Charles River acquires Galapagos at $172 mn cash

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Charles River Laboratories has completed the previously announced acquisition of the CRO services division of Galapagos including Argenta and BioFocus. The acquisition positions Charles River as a full service, early-stage contract research organization (CRO), with integrated in vitro and in vivo capabilities from target discovery through preclinical development.
Argenta and BioFocus are global leaders in integrated drug discovery services, with a predominant focus on in vitro capabilities. Located in the United Kingdom and the Netherlands, Argenta and BioFocus provide a full suite of drug discovery services from target discovery through the delivery of clinic-ready candidates to a broad range of pharmaceutical and biotechnology companies. Their deep in vitro expertise includes medicinal chemistry, target discovery, and complex in vitro biology, as well as therapeutic area expertise in respiratory, inflammation, oncology, and CNS diseases.
The purchase price was USD172 million (€129 million) in cash, subject to certain post-closing working capital adjustments. In addition to the initial purchase price, the transaction includes future performance payments of up to USD6.8 million (€5 million). The acquisition is expected to add approximately 6 percent to Charles River’s net sales in 2014.