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Getinge acquires Applikon Biotechnology

Mattias Perjos

Just before Christmas Getinge announced an agreement to acquire 100% of the shares in Applikon Biotechnology.

Applikon Biotechnology is a company in the area of advanced bioreactor systems for biopharmaceutical production and research, with an annual net sales of approximately SEK 450 million.

“Applikon Biotechnology has a strong portfolio of world class bioreactor solutions which will be a positive addition to Getinge’s existing offer towards the biopharma segment, the fastest growing area within Life Science,” says Mattias Perjos, President & CEO Getinge. “This deal further broadens our position within solutions for efficient, safe and contamination-free research and production processes.”

About Applikon

Applikon Biotechnology is leading in the development and supply of advanced bioreactor systems for the research and production of vaccines and antibodies in the biopharmaceutical industry, as well as enzymes and bio-plastics for industrial biotechnology. The value of the global bioreactor market is estimated to be SEK 10 B with an expected growth rate 2019-2024 of approximately 10% per year. Applikon Biotechnology is a privately-held company, founded in 1973 and has its head office in Delft, The Netherlands. The company employs approximately 180 employees worldwide and works mainly through a global distribution network.

SEK 840 million

Getinge will acquire all outstanding shares in Applikon and will pay approximately SEK 840 M (EUR 80 M) in cash on closing for 100 % of the shares. In addition, a maximum earn out of approximately SEK 630 M (EUR 60 M) can be paid out in 2021-2022 if agreed earnings performance is achieved in 2020-2021.

The acquisition will be financed through debt and the net debt to EBITDA ratio is expected to be impacted by 0.2x at closing of deal in the first quarter of 2020. The integration will be stepwise with full effect from 2022.

Long-term, Applikon is expected to bring a material contribution to Getinge’s Life Science business area in terms of net sales and EBITA. Getinge’s Life Science business performed SEK 2.3 B in net sales and SEK 293 M in EBITA Q4 2018-Q3 2019. For Getinge, the acquisition is not expected to have a material impact on operating profit and earnings per share as of 2020. The acquisition broadens Getinge’s position further within solutions for efficient, safe and contamination-free research and production processes in the biopharma segment.

Photo of Mattias Perjos: Getinge