CellaVision AB: CellaVision AB to acquire RAL Diagnostics
A unique combination of high-quality sample preparation and world-leading
digital cell morphology.
The information was released for public disclosure on September 16, 2019,
at 18:30 CET
CellaVision AB is today announcing that the company has signed an agreement
to acquire the French company RAL Diagnostics (RAL), which manufactures
sample preparation products in hematology, pathology, cytology and
microbiology. RALs sales in 2018 was about SEK 87 million and its EBITDA
margin about 15 percent. The cash purchase price is SEK 268 million on a
cash and debt-free basis. The acquisition is financed through a combination
of CellaVisions own cash and cash equivalents and bank loans arranged by
Skandinaviska Enskilda Banken of SEK 120 million.
The acquisition of RAL is a natural step in CellaVisions established
The acquisition of RAL gives CellaVision the ability to further improve the
quality of sample preparation, which is of great importance for the result
of the blood analysis. The quality of the sample preparation is important
for optimal functioning of CellaVisions systems, and there is a great need
in both large, small and mid-size laboratories for standardized solutions.
This acquisition gives CellaVision a well-established brand with solutions
in staining and sample preparation of the highest quality. CellaVision and
RAL together create an increased customer value in digital morphology by
offering a complete and integrated solution for the hematology laboratory.
Both companies operate in hematology, collaborate with the same global
partners and have the same end users. Already today, CellaVisions and
RALs products are used together by several laboratories and form separate
but integrated steps in a complete blood analysis chain.
The acquisition provides CellaVision with important technology and new
know-how, which in combination will form a good basis for continued growth.
The acquisition is well in line with CellaVisions strategy and underlines
the companys ambition to expand into related product and analysis areas.
In addition to RALs offering in hematology, a segment amounting to 50
percent, RALs product portfolio includes the areas of microbiology,
amounting to 40 percent, and cytology and pathology which together amount
to ten percent. The acquisition thus opens new future opportunities to
apply CellaVisions technology beyond hematology.
Motives and opportunities
Broadened product offer and larger market. Based on the combined portfolios
and potential to standardize the workflow globally, the acquisition is
expected to increase CellaVisions addressable to a total market value of
SEK six billion. The acquisition adds new technology in sample preparation
and gives CellaVision good control of quality of the blood smears analyzed
in the companys equipment. This means a broadening of CellaVisions
product offer, covering a larger part of the blood analysis chain. Sample
preparation primarily consists of consumables, which means that through the
acquisition CellaVision gains access to recurring revenues.
Effective expansion of sales of RALs hematology products to new markets.
RAL holds a strong position in EMEA but has a limited presence in the
Americas and APAC, where CellaVision has established a strong position.
Thus, there are good opportunities to effective sales expansion for RALs
solutions in hematology through CellaVisions organization and established
Expansion into adjacent fields. The acquisition of RAL supplies CellaVision
with considerable experience and knowledge in microbiology, cytology and
pathology, which opens up new opportunities to apply CellaVisions
technology beyond hematology.
I am delighted and proud of the acquisition of RAL. CellaVision and RAL
fit very well together strategically and in combination we have the
capacity for stronger development than would have been possible as two
separate companies. RALs hematology range will have access to
CellaVisions strong market organization and thus be able to reach new
geographies in the Americas and APAC. For CellaVision the acquisition means
that we are broadening our product range while acquiring new and important
skills in analysis areas interesting for CellaVisions future development,
comments CellaVisions President and CEO Zlatko Rihter.
The acquisition is expected to closed during the fall of 2019.
Estimated financial impact
The estimated total sales for CellaVision and RAL in 2018 amounted to SEK
452 million with an EBITDA result of about SEK 131 million, corresponding
to an EBITDA margin of about 29 percent. Through the acquisition
CellaVisions sales in EMEA will grow by more than 90 percent and globally
by about 25 percent.
Indicative key financial information 2018
SEK MILLION CellaVision RAL Total
Net sales 365 87 452
Gross margin 74% 50% 70%
EBITDA 118 13 131
EBITDA margin 32% 15% 29%
The financial information above is only to be regarded as illustrative and
does not include synergy gains, integration costs, transaction costs or
depreciation of surplus values resulting from the acquisition analysis. The
financial information presented above has not been reviewed or audited by
CellaVisions auditors and does not constitute pro forma financial
CellaVisions organic growth target of 15 percent and an EBIT margin of 20
percent remain unchanged.
CellaVision is an innovative, global medical technology company that
develops and sells leading systems for routine analysis of blood and other
body fluids in health care services. The analyses often constitute
important reference data for fast and correct diagnosis of illnesses, for
example of infections and serious cancers. CellaVisions products
rationalize manual laboratory work, and secure and support effective
workflows and skills development within and between hospitals. The company
has leading-edge expertise in image analysis, artificial intelligence and
automated microscopy. Sales are via global partners, supported by the
parent company in Lund and by the companys 17 local organizations for
market support with direct presence in more than 30 countries. In 2018
sales were SEK 365 million and the companys growth target is 15 percent
per year over an economic cycle. The share is listed on the Nasdaq,
Stockholm, Mid Cap list. Read more atwww.cellavision.se
About RAL Diagnostics
RAL is a leading producer and market actor in reagents in hematology,
bacteriology, parasitology, cytology and pathology. The companys reagents
help to identify cell and tissue morphology, parasites and bacteria that
are necessary to diagnose many illnesses. RAL supplies innovative products
and solutions for standardized laboratory diagnostics and improved
performance for cellular image processing. The company in Bordeaux, in
France, includes a production facility with current annual production of
Questions on the acquisition can be addressed to:
Zlatko Rihter, President and CEO, CellaVision AB,
Tel: +46 733-62 11 06.
This information is information that CellaVision AB (publ) is obliged to
disclose pursuant to the EU Market Abuse Regulation and the Securities
Market Act. The Information was released for public disclosure on September
16 , 2019 at 18:30 CET.
* CellaVision to acquire RAL Diagnostics