Thursday, April 07, 2016
Mesa Laboratories, Inc. announced the acquisition of certain assets and liabilities of Pulse Scientific, Inc. (“Pulse”) by the Company’s subsidiary, Mesa Canada, Inc. (“Mesa Canada”). Pulse was a distributor of the Company’s biological indicator (“BI”) products. The acquisition is expected to add approximately $100,000 to Mesa’s revenues and to be accretive to our diluted net income per share during the first twelve months.
Mesa Canada purchased only the BI distribution rights from Pulse and the sales and service of all their other product lines will continue as normal and are not affected in any way by the acquisition of the BI business.
Biological indicators are used to assess the effectiveness of sterilization processes, including steam, gas (such as Ethylene Oxide or Chlorine Dioxide), hydrogen peroxide and radiation, in the hospital, dental, medical device and pharmaceutical industries. Pulse has been a distributor of Mesa’s BI products for many years, selling primarily to the pharmaceutical and medical device manufacturing markets. After a short transition period, Mesa Canada will continue this distribution business, from its office in Markham, Ontario. Centralized supply of BI products from Markham will improve the service to Mesa’s Canadian customers by increasing product availability and reducing shipping time.
“This is the first acquisition of one of our distributors in Canada, following the build-out of Mesa’s direct BI sales efforts in Western Europe, which was completed in January, 2016 and included the purchase of twelve of our former BI distributors” said John J. Sullivan, President and CEO of Mesa. “The acquisition of Pulse will enable us to sell direct in Canada to our target pharmaceutical and medical device markets. Selling direct allows Mesa to capture additional margin and to better understand the needs of our customers, enabling us to grow our Canadian BI business more effectively.”
Source : mesalabs.com
