January 23, 2018

Harvard Bioscience acquires Minn. firm for $70M, sells subsidiary for $20M

Jeff Duchemin, president and CEO, Harvard Bioscience in Holliston.

Holliston medical device maker Harvard Bioscience is set to acquire a Minnesota biomedical firm for $70 million, simultaneous to a $20-million sale of Harvard's subsidiary Denville Scientific.

The company said on Monday it came to an agreement with Data Sciences International to completely acquire that company, which is known for physiology monitoring for customers in the pharmaceutical, biotech, research and government sector.

In 2017, DSI had revenues of $44 million.

In a simultaneous move, Harvard Bioscience is selling off its wholly-owned subsidiary, Denville Scientific, a North Carolina-based life science research consumables distributor.

The company in 2009 acquired Denville Scientific for $23 million. Harvard Bioscience said the company contributed $24.5 million to the company in 2017, but was no longer central to Harvard Bioscience strategy.

"We believe this is a historic day for Harvard Bioscience and a major step toward transforming our company," CEO Jeffrey Duchemin said in a conference call Tuesday morning from DSI's headquarters.

The removal of that entity from the company will allow Harvard Bioscience to focus on its more profitable instrumentation business, the company said.

The move, according to Duchemin, will make Harvard Biosceince a larger company and less prone to fluctuations in academic research funding.

"The future is truly bright for Harvard Bioscience," he said.

After the transactions, the company expects fiscal 2018 revenues between $118 million and $123 million, gross profit margins between 54 percent and 57 percent, and operating margins between 4 percent and 7 percent.

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