Bruker Companies Combine to Form $900 Million Company
Bruker BioSciences will certainly benefit from the cost saving, technology development and cross selling opportunities created by the acquisition. As one company, Bruker’s size and brand name should allow for greater traction in new markets and a more diverse revenue stream, as well as bolster Bruker’s balance sheet. Bruker BioSpin is the leading NMR and EPR company.
Billerica, MA 12/3/07—Bruker BioSciences has entered into a definitive agreement to acquire sister company Bruker BioSpin in a transaction valued at $914 million. Bruker BioSciences will offer $388 million in cash and 57.5 million shares, which are valued at $528 million according to the 10-day average closing price as of November 28. As a result of the acquisition, Bruker BioSciences expects to generate pro forma revenues of more than $900 million in 2007. Bruker BioSpin develops and manufactures magnetic resonance products, including NMR, molecular resonance imaging (MRI) and electron paramagnetic resonance (EPR) spectroscopy systems, and had 2006 revenues of $447.0 million. “This business combination will enable us to better leverage the Bruker brand and to increase our capabilities even further in many of the markets and geographies that we serve,” stated Frank Laukien, president and CEO of Bruker BioSciences. “We expect that a combined single public Bruker company will be beneficial to our customers, employees and suppliers, and will be advantageous to all Bruker BioSciences shareholders through significantly improved operating margins, net income margins, EPS and cash flows.” The Laukien family, which owns the majority of both companies, is expected to own around 69% of the combined companies. In addition, Bruker BioSciences will add two directors to its Board: Dr. Dirk Laukien, president of Bruker Optics and co-CEO of Bruker BioSpin, and Dr. Tony Keller, executive chairman of Bruker BioSpin. The transaction is scheduled to close early next year, pending shareholder approval.
