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November 19th, 2019 | 07:35 CET

Expedeon AG before sale of a division to Abcam plc

  • Medical
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The medical research company Expedeon has offices in Heidelberg and Madrid and develops innovative technologies, products and services that are used in research laboratories worldwide. Expedeon's products enable scientists to break down the boundaries of research and product development and make a significant contribution to the market launch of new diagnostic tools. With applications that cover the entire genomics, proteomics and immunology workflow, the technologies developed by Expedeon accelerate and simplify research and enable both biopharmaceutical and diagnostic companies and organizations to introduce new and cost-effective processes. Expedeon's products are distributed through direct sales and several distributors in Europe, the USA and Asia. The company has offices in Germany, Spain, United Kingdom, USA and Singapore.

time to read: 2 minutes | Author: Mario Hose
ISIN: DE000A2YN801 , GB00B6774699

Table of contents:

    Cash inflow through transaction

    On November 11, 2019 Expedeon AG reached an agreement with the online antibody distributor Abcam plc on the planned sale of the immunology and proteomics businesses. Should the deal be approved at the extraordinary general meeting scheduled for December 19, 2019, the transaction is expected to close on January 1, 2020.

    According to the agreement, a purchase price of EUR 120 million in cash is to be paid for the acquisition of the two businesses, whereby an amount of EUR 105.6 million is due for immediate payment and a balance of EUR 14.4 million is to be paid over a period of two years.

    Acquisitions before successful disposal

    The business segments that are thus up for sale were acquired by Expedeon AG in the past financial years as part of the intensive M&A activities. The electrophoresis supplier C.B.S. Scientific was acquired at the end of 2016, starting with the acquisition of the proteomics specialist Expedeon in 2016, which has since given its name to the company. These acquisitions were followed by the acquisition of Innova Biosciences (2017) and TGR Biosciences (2018), both active in the field of protein measurement.

    In total, the purchase price of these four companies amounts to EUR 39.8 million and is thus well below the sales price of around EUR 120.0 million that has now been achieved. The current market capitalisation of Expedeon AG at a share price of EUR 1.62 is EUR 84.73 million and would also be significantly exceeded by the purchase price.

    Turnover drops after exit

    According to the reports of GBC Research, the businesses and products held for sale are responsible for around 90% of annual Expedeon sales and should make a clearly positive contribution to earnings. With annual sales of these products expected to reach around EUR 14.4 million in 2019, this would result in a purchase price multiple of more than 8.

    With regard to the key operating figures, the coming financial year would be characterised by the loss of most of the sales revenue and earnings contribution. In 2020, the company is expected to report only about 10% of the current sales level, i.e. around EUR 1.6 to 2.0 million.

    Cash per share exceeds market price

    Should the transaction be brought to a successful closing, as the experts at GBC Research assume, Expedeon AG would have liquid assets of EUR 120 million, which would provide considerable financial leeway. This would amount to a liquidity of EUR 2.29 per share.

    Until the experts at GBC can make a concrete assessment of the remaining business, they will also confirm their previous price target of EUR 3.20 per share. They continue to award the Rating BUY.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

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    Der Autor

    Mario Hose

    Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.

    About the author

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