Mesa Laboratories Inc acquires Canada's Infitrak Inc

Tuesday, July 07, 2015

Mesa Laboratories, Inc. announced the acquisition of Infitrak Inc. and its holding company, 2396081 Ontario Inc. (collectively “Infitrak”), located near Toronto, in Markham, Ontario.

Under the terms of the transaction, we acquired all of the outstanding shares of common stock of Infitrak, whose business involves providing consulting, packaging and measuring solutions for cold chain applications.  The acquisition price for Infitrak consisted of cash consideration of $12,000,000 CDN (approximately $9,600,000 USD) which is subject to a minor working capital adjustment, and a future contingent payment of up to $15,000,000 CDN (approximately $12,000,000 USD), based on the growth of Infitrak’s cold chain business during the first two years following the acquisition.  The acquisition of Infitrak is expected to add approximately $5,500,000 to Mesa’s revenues and to be accretive to our diluted net income per share during the first twelve months.

A “cold chain” is a supply chain for temperature sensitive substances involving an uninterrupted series of storage and distribution activities which maintain a given temperature range from point of manufacture or collection to point of use. Cold chains are primarily used within the pharmaceutical, healthcare, and food industries, although there are some smaller markets in other industries.  Infitrak’s product offerings consist of:

  • • Consulting services such as compliance monitoring, packaging development and validation or mapping of transport and storage containers.
  • • Thermal packaging products such as coolers, boxes, insulation materials and phase-change products to control temperature during transport.
  • • Parameter monitoring (primarily temperature) of products in a cold chain using data loggers and other indicators.
  • • Data management and software which provide documentation and alerts.
     

Going forward, Infitrak will continue its operations from the Markham facility, expanding its focus beyond Canada to the U.S and other markets.  The Infitrak management team will remain with the Company, helping to drive growth of the business.

“Cold chain markets are expanding worldwide and we are excited about adding Infitrak’s offering to Mesa’s portfolio of products,” said John J. Sullivan, President and CEO of Mesa.  “Infitrak’s strategy is unique in the industry, offering a complete suite of solutions, including cold chain services, package assessment and design and real time data monitoring.  Infitrak’s business has been expanding rapidly in recent years and, by leveraging Mesa’s resources and contacts in the pharmaceutical industry, we are looking forward to continued rapid growth as we take their business model from Canada into the U.S. market.  Cold chain products fit very well with Mesa’s market focus, as they are used mainly in regulated markets for maintaining quality products, and they complement our DataTrace and Continuous Monitoring product lines.  I look forward to working with the entire Infitrak team as we execute our strategy to grow the business in the U.S. and beyond.”

“We are thrilled to join a quality organization like Mesa and continue to grow our cold chain product and service offerings”, commented the three shareholders Jean Bedard, Karl Giamov and Ryan Sanders. “This will provide us with a great opportunity to expand our business into the U.S. and other territories rapidly.  We will continue to produce quality products and services to help customers with their regulatory cold chain needs.”

 

mesalabs.com