Swiss group Tecan to buy Paramit Corp for $1 billion
23/06/2021 18:51
ZURICH, June 23 (Reuters) - Swiss laboratory instruments
maker Tecan Group TECN.S has agreed to buy U.S. medical
devices and life sciences instruments group Paramit Corp for $1
billion, Tecan said on Wednesday.
The transaction, set to wrap up within months pending
approvals, should add to earnings per share immediately upon
closing, Tecan said.
Paramit was expected to generate around $280 million in 2021
sales and around $50 million in earnings before interest, tax,
depreciation and amortisation (EBITDA) before
acquisition-related costs.
Tecan said it would finance the deal with cash on hand and
by issuing new shares and a bond. Credit Suisse CSGN.S had
committed bridge financing for the deal.
"For the equity portion of the financing, Tecan intends to
issue new shares from existing authorized share capital
corresponding to less than 10% of its share capital," it said.
It saw its debt leverage after the transaction at around 1.0
time net debt/EBITDA, adding it was set to decrease quickly
thanks to cash generation by the combined entity.
(Reporting by Michael Shields; Editing by Cynthia Osterman)
((Michael.Shields@thomsonreuters.com; +41 41 528 3630; Reuters
Messaging: michael.shields.thomsonreuters.com@reuters.net))