Cincinnati-based Meridian Bioscience bought out for $1.53 billion
Diagnostic testing solutions companyMeridian Bioscience has agreed to be bought for $1.53 billion.
The Newtown-based company has entered into a merger agreement with SD Biosensor and SJL Partners in Seoul, South Korea.
The company's leadership team and headquarters are expected to remain in Cincinnati where Meridian will operate as an independent entity.
Meridian's chairman, John McIlwraith, says the deal comes after an extensive review of the company's growth and future opportunities.
In a release, CEO Jack Kenny calls it an exciting new chapter.
"In addition to delivering immediate and significant value to our shareholders, we believe the transaction will enhance our ability to serve customers as we navigate the decline in COVID-19 testing demand and develop new products with the benefit of SDB's industry expertise and complementary offerings.
"Current and prospective employees around the world will also benefit from an even stronger Meridian supported by SDB's and SJL's financial backing and experience. I look forward to working with SDB and SJL and the rest of our Meridian team to build long-term strength and drive further growth in the diagnostics space."
Shareholders will receive $34 per share. The deal is slated to close in the fourth quarter of the year.
As WVXU's Ann Thompson reported in 2021, Meridian had been struggling prior to the coronavirus pandemic. That all changed once the pandemic hit and the company began churning out components for COVID-19 testing kits and later creating its own test kits.
Meridian saw fourth quarter profits in 2020 skyrocket 26%, WVXU reported, with $253 million in sales for 2020 and more than $300 million in 2021.