GE Sells Gene Editing Business

London, UK 7/19/17—Gene editing firm Horizon Discovery has agreed to acquire Dharmacon from GE for $85 million (see Horizon Discovery Adds to Genetic Editing Offerings as GE Takes Stake in Company). The offering consists of $50 million in cash and $35 million in equity consideration, giving GE a 9% holding in Horizon Discovery. Dharmacon provides RNAi products, CRISPR reagents and arrayed libraries. Dharmacon’s 2016 revenues declined 2.4% to $36.7 million, with EBITDA of $3.8 million (see Bottom Line). “Through the combination of complementary technology, product portfolios and manufacturing capabilities, the acquisition of Dharmacon by Horizon creates an emerging leader in the application of gene-modulation technologies in life science research,” stated Horizon Discovery CEO Darrin Disney. “We expect that the brand recognition, and sales, marketing (including eCommerce) and distribution channel particularly in the academic community, as well as intimate relationships in biotech and pharma that Dharmacon will bring to Horizon, will transform the opportunity for Horizon’s product portfolio as well as generate attractive cost-base synergies.” Pro-forma revenues for the combined companies in 2016 would have been £51.3 million ($69.3 million = £0.74 = $1) with an EBITDA loss of $4.1 million. The deal is expected to be immediately accretive to earnings.

In connection with the transaction, Horizon Discovery plans to raise £76.4 million ($99.2 million = £0.77 = $1), net of expenses, through a new share offering, of which $50 million will be used for the purchase. The purchase gives Horizon Discovery the tools for doing CRISPR in the lab and expands its product line to include RNAi gene editing techniques. (For an overview of the CRISPR market, see Market Profile.)

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