SEOUL, July 8 (Yonhap) — South Korean maker of novel coronavirus (Covid-19) test kits SD Biosensor Inc. said Friday it will buy U.S. diagnostician Meridian Bioscience Inc. for approximately 2 trillion won ($1.53 billion). As part of efforts to strengthen its overseas operations.
Through a consortium formed with private equity fund SJL Partners LLC, SD Biosensor has announced that it has signed an agreement with Meridian Biosciences to acquire the Cincinnati, Ohio-based company in an all-cash transaction.
SD Biosensor will own approximately 60% of Meridian Bioscience and SJL the remainder. The American company also officially announced the deal on its website. According to SD Biosensor, once the deal is completed, it will become the largest acquisition of a foreign company by a local company in the medical sector.
The South Korean company said it plans to leverage Meridian Bioscience’s North American distribution network to accelerate its entry and operations in the US and other overseas markets.
SD Biosensor, based in Suwon, about 35 km south of Seoul, also said it wants to reduce the cost of investments thanks to existing manufacturing facilities in the US, Germany and Canada. The company has recently stepped up its investments to expand its presence overseas.
At the end of March, SD Biosensor bought Pestibion, a major distributor of diagnostic products in the German and Australian markets, for 16 billion, and signed an agreement to acquire Relab SRL. Italy won 61.9 billion in April.