LinkMed completes acquisition of Olerup SSP AB
LinkMed, a leading listed private equity company in the life science sector, is completing the previously announced acquisition of Olerup SSP AB, a world-leading company in the transplantation sector and one of Sweden’s most profitable biotechnology companies.
The transaction was conditional to approval by an extraordinary meeting of shareholders of LinkMed AB. The meeting was held on July 22, 2008 and shareholders at the meeting voted to issue convertibles in LinkMed at a value of SEK 31 million.
The acquisition will further strengthen LinkMed’s position in the transplantation sector and is strategically important in that it complements LinkMed’s portfolio company AbSorber and its XM-ONE® product. In the long-term, LinkMed will strive to build a larger company in the transplantation sector with a broad product portfolio. The acquisition is valued at SEK 216 million.
Olerup SSP’s products are primarily used prior to bone marrow transplantations. The company is world-leading in some of the tests that are required prior to transplantations in order to match the donor with the recipient. A better match between the donor and the recipient increases the probability of a successful transplantation and lowers the risk of complications such as rejection reactions.
From July 22, 2008, Olerup SPP AB will be a wholly owned subsidiary of LinkMed. The company is being acquired from the founder Olle Olerup and is located outside Stockholm.
• From the date of acquisition LinkMed will report positive operating profit and cash flow from operations.
• Olerup SSP AB reported sales of SEK 69.0 million and an EBIT of SEK 35.9 million in 2007. Comparable sales in 2006 were SEK 64.5 million. EBIT margins for the past five years have averaged 56 percent.
• Olerup SSP AB reported sales of SEK 36.2 million for the first six months of 2008, with an EBIT of SEK 21.4 million.
• Olerup SPP AB is world leading in developing reagents and kits for low resolution and high resolution HLA (Human Leukocyte Antigen) typing. The company has a global sales agreement with the Germany company Qiagen, a leading distributer in the area of diagnostics.
• Assistant Professor Olle Olerup will continue as CEO of Olerup SSP AB, now a wholly owned LinkMed subsidiary.
• The maximum purchase price is set at SEK 216 million, with part of the payment being made in cash, part in convertibles and part as an additional purchase sum linked to future sales goals.
“We are very pleased to wrap up this acquisition. It strengthens LinkMed’s position in the transplantation sector and at the same time increases LinkMed’s financial flexibility,” says LinkMed’s CEO and founder Ingemar Lagerlöf.
For more information please contact:
Ingemar Lagerlöf, CEO +46 8 508 939 93
Okee Williams, Portfolio Manager +46 8 508 939 40
LinkMed, in collaboration with innovators, develops new life science companies. By contributing entrepreneurship and capital, LinkMed has created a portfolio of eleven companies, six in biotechnology and five in medical technology. The company’s principal owners are FastPartner, Koncentra Holding, and the founder Ingemar Lagerlöf. The LinkMed share is listed on the OMX Nordic Exchange Stockholm in the small-cap sector (ticker:LMED). See www.linkmed.se for more information.