Techne Corp. buys Tocris Holdings Ltd. for $124 million

Techne Corp., the Minneapolis, Minnesota-based manufacturer of hematology controls and biotechnology products for research and […]

Techne Corp., the Minneapolis, Minnesota-based manufacturer of hematology controls and biotechnology products for research and diagnostics, announced that it has bought U.K.-based Tocris Holdings Ltd. and its subsidiary Tocris for about $124 million in cash.

The Bristol, U.K-based company makes biologically active neurochemicals and biochemicals that researchers use to better understand the biological processes and pathways. The products are used in life science research activities and as part of the initial drug discovery process. Tocris had revenue of $18.2 million in 2010 and profits (earnings before income tax, interest, depreciation, amortization) of $11.4 million for an EBITDA margin of about 63 percent.

In a statement, Techne said the acquisition is expected to increase the company’s fourth-quarter fiscal year 2011 sales by about $3.5 million. Tocris is meant to complement Techne’s subsidiaries R&D Systems Inc. and R&D Systems Europe Ltd. Through those subsidiaries, Techne makes purified cytokines (proteins), antibodies and assay kits that are sold to biomedical researchers and clinical research laboratories.

“The acquisition will enhance and supplement the depth and breadth of R&D Systems’ product offering and will augment our ability to serve research scientists, as well as leverage our marketing, sales and distribution capabilities with this important product class,” said Tom Oland, president and CEO, in a statement.

Tuesday’s acquisition comes on the heels of another purchase Techne announced a month ago. On April 4, the company said its U.S. and European subsidiaries had acquired the assets of Boston Biochem Inc. and its U.K. distributor Boston Biochem Ltd. Terms of that transaction were not disclosed.

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