Press Release - Takara Bio to Acquire Clontech Unit of BD Biosciences
July 1st, 2005
Takara Bio Inc. (Takara Bio: Otsu, Japan) today announced that it has entered into a definitive agreement to acquire the Clontech unit ("Clontech") of BD Biosciences, mainly consisting of Clontech Laboratories Inc. (employees: 190), for USD $60 million (adjusted from USD $65 million due to the retention of certain inventories and receivables by the seller), from BD (Becton, Dickinson and Company: Franklin Lakes, NJ). The acquisition, which is subject to regulatory approvals, is expected to close by August 2005 and will be made through a wholly-owned subsidiary of Takara Bio to be established in the US.
Clontech Laboratories Inc. (Palo Alto, CA), founded in 1984, was acquired by BD in 1999. Clontech develops, manufactures and markets innovative biological products to the life science market worldwide and has established a strong position especially in the molecular biology research area. Clontech's products are widely used in the area of gene identification, gene expression, and gene functional analysis. For fiscal year 2004, Clontech reported total revenues of around USD $60 million worldwide.
Since starting to manufacture and supply restriction enzymes in 1979, Takara Bio has positioned itself as a leading company in the Japanese life science market and first introduced PCR related products in Japan. The company's revenues in the research reagent business worldwide were ¥11.8 billion JPY for fiscal 2004.
Takara Bio anticipates the following synergies from this acquisition:
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Product Line Expansion
Clontech's innovative products in gene function and protein interaction analysis with its newly engineered fluorescent proteins, as well as protein expression vectors, are complementary to Takara Bio's existing products in the molecular biology area, such as restriction enzymes and PCR enzymes. The combination of Takara Bio's and Clontech's products are expected to provide researchers with complete and integrated research solutions in molecular biology research.
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Increase of Sales Activity in Europe and the United States
In fiscal 2004, more than 70% of Clontech's total revenue was derived from Europe and the United States, while approximately 85% of Takara Bio's total revenue was derived from Japan. The acquisition will significantly enhance Takara Bio's sales activity in Europe and the US.
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R&D Enhancement
Takara Bio conducts R&D in Japan, while Clontech conducts R&D in the US. Takara Bio will integrate and strengthen its R&D activities in both regions, while focusing on product development and improved efficiencies. This integration is expected to strengthen the company's position in the worldwide life science market.
For more information, please contact:
Director of Business Development
Clontech Laboratories, Inc.
650 .919.7300
Statements made in this document with respect to Takara Bio's current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Takara Bio. These statements are based on the judgment of the management in light of the information currently available to it, and also based on various assumptions and views as a result of that information that contain significant risks and uncertainties. Please note that actual results may differ materially from these projections. Factors that may affect actual results include but are not limited to, changes in economic conditions, especially those in consumption trends, exchange rate fluctuations, regulatory and administrative changes, competitive pressure in pricing and product strategies, decline in our ability to sell existing and new products, production interruption, infringement of our intellectual property rights, radical technological innovations, and adverse judgments in significant lawsuits.