The Nottingham-based firm raised new equity from shareholders and agreed a £9.4m funding package with RBS CIB to assist with the acquisition.
Source BioScience operates two divisions. Its LifeSciences unit provides DNA sequencing, bioinformatic analysis and a comprehensive portfolio of over 20 million clones and 200,000 antibodies to research institutions and biotech companies worldwide.
The Healthcare division provides screening and reference laboratory diagnostic testing for cancer and other diseases to the NHS. It also a leading player in the development and validation of biomarkers for use as companion diagnostics or as pharmacodynamic endpoints for clinical and research studies.
Rochdale-based Vindon provides controlled environment services and products for the pharmaceutical industry, life sciences and food sectors. The business manufactures solutions for the management of temperature, humidity and light, and its product range includes controlled environment rooms and storage chambers, blood bank storage units and plant growth chambers.
Source BioScience’s acquisition will grow its product range and improve the service offering, and the company plans to expand internationally, particularly into the United States through Vindon’s US-based facilities in Atlanta and Los Angeles. Source Bioscience already has operations in Berlin and Dublin.
Nick Ash, Chief Executive Officer of Source BioScience, said: “The potential combination of Source BioScience and Vindon brings a multitude of benefits to both companies; from extended geographic reach and in-house expertise, to a broader offering of products and services for our customers.
“As an enlarged group, there will be financial benefits and the opportunity to accelerate our growth. The support of our relationship bank RBS in developing the funding package for us was crucial to getting the deal done.”
CIB provides a fully integrated corporate banking proposition to UK companies and institutions with an annual turnover in excess of £25m. Products include deposits, lending, risk management, trade, cash and trade management, specialist asset and invoice financing.
David Caunce, Director, RBS, Structured Finance Corporates, Corporate & Institutional Banking, said: “Source BioScience is a fantastic business, with a successful business model and strong ambitions. The acquisition of Vindon will see Source BioScience add to its already excellent offering and we’re delighted to be able to provide the banking finance and assist with the next stage of its growth.”
RBS was advised by a team led by Matthew Christmas at DLA Piper UK LLP.