Caisse de dépôt et placement du Québec (CDPQ) has invested about $289 million (€$200 million) in Eurofins Scientific SE, a provider of clinical diagnostic testing headquartered in Luxembourg. Eurofins, which went public in 1997, operates more than 225 laboratories across 39 countries to test food, environment and pharmaceutical products. Its sales have increased by 37 percent each year, to reach over €1.9 billion in 2015, Eurofins reported. The proceeds of the private placement deal will enable the company to continue making acquisitions in an industry that remains fragmented, CDPQ said.
CDPQ invests EUR 200 million in Eurofins
MONTRÉAL, June 29, 2016 /PRNewswire/ – CDPQ announced today a EUR 200-million investment in Eurofins, a world leader in food, environment and pharmaceutical products testing. The company operates in Europe, North and South America and Asia-Pacific.
After several strategic acquisitions and due to a sustained organic growth over the past five years, Eurofins has become one of the world’s leading networks of testing laboratories in its main sectors of activity. Its analyses are mostly conducted in the food (e.g. traceability), pharmaceutical products (e.g. laboratory testing for clinical studies) and environment (e.g. biodegradability) industries. CDPQ’s investment should particularly enable the company to continue making acquisitions in an industry that remains highly fragmented.
“With a solid, visionary management team, Eurofins has successfully established itself as a world leader in the cutting-edge market segment of bio-analysis testing. Under the leadership of Stephane Etroy, Head of Europe Private Equity, CDPQ will support Eurofins’ management team as it pursues its international growth plans and puts innovation forward to develop the company over the long term,” said Roland Lescure, Executive Vice-President and Chief Investment Officer at CDPQ.
“This transaction provides Eurofins with the ability to potentially accelerate the achievement of its mid-term plan, should the opportunity arise, and create significant incremental shareholder value with limited dilution,” said Dr. Gilles Martin, Chief Executive Officer of Eurofins. “CDPQ’s approach of focusing on long-term financial returns on its investment and deploying long-term partnerships with the companies it invests in, which may include supporting larger acquisitions, is entirely consistent with Eurofins’ strategy of deploying capital for long-term value creation and securing flexibility in its future funding. We look forward to a mutually beneficial partnership with CDPQ.”
Since it went public in 1997, Eurofins’ sales have increased by 37% each year, to reach over EUR 1.9 billion in 2015.
Eurofins Scientific believes it is the world leader in food, environment and pharmaceutical products testing, as well as one of the global market leaders in agroscience, genomics, discovery pharmacology and central laboratory services. In addition, Eurofins is one of the key emerging players in specialty clinical diagnostic testing in Europe and the USA.
With over 23,000 staff in more than 225 laboratories across 39 countries, Eurofins offers a portfolio of over 130,000 validated analytical methods for evaluating the safety, identity, composition, authenticity, origin, traceability and purity of biological substances and products, as well as for innovative clinical diagnostic. The Group provides its customers with high-quality services, accurate results on time and expert advice by its highly qualified staff.
Eurofins is committed to pursuing its dynamic growth strategy by expanding both its technology portfolio and its geographic reach. Through R&D and acquisitions, the Group draws on the latest developments in the field of biotechnology and analytical chemistry to offer its clients unique analytical solutions and the most comprehensive range of testing methods.
As one of the most innovative and quality oriented international players in its industry, Eurofins is ideally positioned to support its clients’ increasingly stringent quality and safety standards and the expanding demands of regulatory authorities and healthcare practitioners around the world.
The shares of Eurofins Scientific are listed on the Euronext Paris Stock Exchange (ISIN FR0000038259, Reuters EUFI.PA, Bloomberg ERF FP).
ABOUT CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC
Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at December 31, 2015, it held $248.0 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure and real estate. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.
Photo courtesy of Eurofins Scientific