Techne, a developer, manufacturer and seller of biotechnology products and clinical controls, has announced that its R&D systems China subsidiary, a specialty manufacturer of biological products, has entered into an agreement to acquire 100% of Shanghai PrimeGene Bio-Tech.
PrimeGene focuses on the development, manufacture and distribution of recombinant proteins for research and diagnostic applications in the China market.
R&D Systems is a developer and manufacturer of purified cytokines (proteins), antibodies, immunoassays and biologically active small molecules, which are sold to biomedical researchers and clinical research laboratories. PrimeGene and R&D China will collectively operate under the leadership of managing director Wendy Shao after close of the transaction.
PrimeGene was founded in 2006 and is based in Shanghai. Many of its recombinant protein products can be used in both research and preclinical studies. PrimeGene is well positioned to capitalize on rapid domestic growth driven by the increasing attention to basic sciences, as well as Bio-Techne's worldwide reach into adjacent research markets.
PrimeGene had product sales of approximately $4 million in 2013 and, therefore, the acquisition will not have a material effect on Bio-Techne's fourth quarter fiscal year 2014 or fiscal 2015 sales. The PrimeGene ownership interest will be acquired for cash, subject to adjustment following closing based on the final level of working capital of PrimeGene.
Charles R. Kummeth, president and CEO of Bio-Techne, said, "The PrimeGene business expands our regional manufacturing capabilities, creating more critical mass for our rapidly growing China business and complements our existing product portfolio by adding over 400 new protein products."
PrimeGene general manager Wang Huisheng, said, "Strategically, we believe the fit is excellent, as both PrimeGene and R&D China have many customers in common and yet our product offerings are fairly complementary. Consequently, we anticipate the combined business will represent more of a one-stop-shop for our customers and position us well to compete in the global market. In addition, there are many similarities of culture between the two companies and we look forward to leveraging the R&D Systems commercial channels."
Wang will continue to be general manager of PrimeGene following the closing.