Eurofins acquires EAG Laboratories, LGC Forensics and Institut Nehring

20 November 2017 Consultancy.uk

Pharma and life sciences company Eurofins Scientific has closed three acquisitions in recent weeks. In Germany, the firm bought Institut Nehring, a food testing laboratory, in the US Eurofins Scientific purchased EAG Laboratories, while in the UK, it bolted-on the forensics and security division of LGC, the largest player in UK’s forensics market.

With over 30,000 staff in 375 laboratories across 40+ countries, Eurofins Scientific is one of the globe’s larger companies specialised in food, environment and pharmaceutical products testing. The firm also provides a range of laboratory services for agroscience, genomics, discovery pharmacology and for specialty clinical diagnostic testing. As part of the firm’s growth strategy, aimed at both expanding its geographical reach as well as services portfolio, Eurofins completed three acquisitions in the past two months.

EAG Laboratories

The addition of San Diego headquartered EAG Laboratories – a deal valued at $780 million – added 21 laboratories in 18 locations worldwide to its footprint, serving approximately 4,000 customers. EAG has grown significantly over its 40-year history, both organically and through acquisitions, and today the company employs over 1,000 professionals, generating revenues in excess of $220 million. 

“EAG’s competencies, reputation for scientific excellence and footprint further strengthen Eurofins’ global offering in the highly attractive biopharmaceutical and agroscience testing markets with perfect geographic complementarity. In addition EAG provides Eurofins with an entirely new business line and growth market in material sciences. We look forward to strengthening their portfolio and operating footprint by providing access to the full range of services and capabilities of the group,” said Gilles Martin, Eurofins CEO.

Eurofins acquires EAG Laboratories, LGC Forensics and Institut Nehring

LGC Forensics

The acquisition of the forensics and security division of LGC (‘LGC Forensics’), the largest player in the UK forensics market, added over 650 staff in eight locations, seven in the UK and one in Germany, and annual revenues in excess of €45 million. 

LGC Forensics provides a range of forensic science services including casework, DNA testing, digital forensics, drugs and toxicology and firearms. The company completes over 34,000 casework investigations per annum, leveraging over 120 accredited methods, significantly more than any of their competitors.

“This transaction is another demonstration of Eurofins’ commitment to acquire advanced technologies to expand its state-of-the-art portfolio of analytical services,” said Martin. LGC Forensics’ digital forensic services will provide Eurofins with new skills and technologies including: computer and mobile phone forensic services, cell site analysis, imagery and audio analysis. The move also bolstered Eurofins’ digital forensics business, a fast growing market against a backdrop of an increasing prevalence of cyber-crimes.

Martin added, “In addition to the large volume of DNA testing it carries out, LGC Forensics adds another spectrum of new advanced services that Eurofins can now offer to its clients. In return, LGC Forensics will gain access to the Group’s entire portfolio of competencies, logistics and clients, which should help reinforce their leadership in the UK and German forensics markets and expand their offering to other European countries.”

Institut Nehring

The most recent acquisition was that of Institut Nehring, a food testing laboratory in the German market. Institut Nehring, established in 1905, performs analytical tests for food products, including: chemical, physical, biochemical, microbiological and sensorial testing. The German firm further provides food consultancy services that cover food law, food technology, food safety and hygiene, food quality control, site inspections and audits, harm reports and expert counselling.

The purchase of Institut Nehring, which is headquartered in Braunschweig, added 76 staff and annual revenues close to €5 million. Martin: “We are pleased to welcome Institut Nehring, a highly renowned food testing laboratory with a long history, to Eurofins’ family of businesses. The acquisition expands Eurofins’ food packaging material testing services. In return, Institut Nehring will gain access to the Group’s entire portfolio of competencies, logistics and clients, as well as the Group’s IT systems, which should lead to improved process optimisation to the benefit of Institut Nehring’s customers.”

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