Qiagen to buy PG Biotech for $14.5 million

PG Biotech is a leading manufacturer of polymerase chain reaction (PCR)-based molecular diagnostic kits in China. Qiagen hopes the acquisition will expand its position as a provider of molecular diagnostics solutions in the rapidly growing Asian markets. The transaction is currently pending Chinese government approval and is subject to customary closing conditions.

Under the terms of the acquisition agreement, Qiagen will acquire 100% of the outstanding shares of PG Biotech for approximately $14.5 million in cash. As 52% of PG Biotech’s shares were held by state-owned institutions, Qiagen’s agreement to acquire PG Biotech was the result of a regulated auction process. The company expects to incur one-time charges of approximately $0.01 – 0.02 per share once the deal is closed.

Qiagen expects this transaction to contribute approximately $6 – 7 million in sales over a period of 12 months. The company said additional financial information would be made available following the closing of the transaction.

Qiagen believes that the acquisition of PG Biotech will represent a superb fit with the company’s molecular diagnostics business which is now expected to record sales of over $100 million in 2006. The business profile of PG Biotech is comparable to that of the recently acquired Artus GmbH (now Qiagen Hamburg GmbH) with the difference that PG Biotech has a focus on solutions targeting the Asian markets.