IBA has decided to exercise its option to purchase 80.1 percent of the indirect interest held by Institut National des Radioéléments (IRE) in Fleurus, Belgium, in CIS Bio International (CISBIO) for nearly $30 million (€20 million), with 50 percent to be paid in cash and 50 percent in IBA stock.
The transaction will strengthen IRE’s position as IBA’s second largest shareholder, with almost 6 percent stake in the group. The cash payment will be used to seed projects useful to the joint development of IRE, CISBIO and IBA, according to the Louvain-la-Neuve, Belgium-based company.
As part of this operation, IBA and IRE have also agreed to develop various partnerships thus optimizing areas of synergy by pooling know-how and scientific, technical and commercial supports.
“Bringing CISBIO into the IBA Group is a very important step for our company,” said Pierre Mottet, CEO of IBA. “We believe that synergies with IBA will enable continued growth in CISBIO’s various businesses and will allow our two entities to take a leadership position in the field of pharmaceuticals. This acquisition makes IBA one of the major players in the radiopharmaceutical industry in Europe.”
More specifically, the acquisitions will strengthen the company’s research and development capacity to develop new molecular imaging molecules, by
incorporating CISBIO’s scientific teams; strengthen its PET production and distribution network, by incorporating CISBIO’s six FDG (fluorodeoxyglucose) production and distribution facilities in France; sustain sales growth in the eurozone, thereby reducing dependency on the dollar; and achieve economies of scale, Mottet concluded.
CISBIO, headquartered in Saclay, near Paris, France, has around 600 employees and posted consolidated revenues of nearly $186 million (€120 million) in 2007.