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Mesa acquires Infitrak to expand cold-chain technology offering

Steve Rogerson
July 14, 2015
 
Colorado-based Mesa Laboratories has acquired Infitrak and its holding company 2396081 Ontario, located near Toronto, for about US$9.6m to get its hands on the Canadian company’s cold-chain technology. Another $12m could be added to the price depending on how the business performs in the next two years.
 
“Cold-chain products fit very well with Mesa’s market focus, as they are used mainly in regulated markets for maintaining quality products, and they complement our DataTrace and continuous monitoring product lines,” said John Sullivan, president and CEO of Mesa. “I look forward to working with the entire Infitrak team as we execute our strategy to grow the business in the US and beyond.”
 
Mesa has acquired all the outstanding shares of common stock of Infitrak, the business of which involves providing consulting, packaging and measuring technology for cold-chain applications. The acquisition price consisted of a cash consideration of approximately $9.6m, which is subject to a minor working capital adjustment, and a future contingent payment of up to $12m, based on the growth of Infitrak’s cold-chain business during the first two years following the acquisition.
 
The acquisition is expected to add about $5.5m to Mesa’s revenues and to be accretive to its diluted net income per share during the first twelve months.
 
A cold chain is a supply chain for temperature sensitive substances involving an uninterrupted series of storage and distribution activities which maintain a given temperature range from point of manufacture or collection to point of use. Cold chains are primarily used within the pharmaceutical, healthcare and food industries, although there are some smaller markets in other industries.
 
Infitrak’s product offerings consist of: consulting services such as compliance monitoring, packaging development and validation or mapping of transport and storage containers; thermal packaging products such as coolers, boxes, insulation materials and phase-change products to control temperature during transport; parameter monitoring – primarily temperature – of products in a cold chain using data loggers and other indicators; and data management and software that provide documentation and alerts.
 
“We are thrilled to join a quality organisation like Mesa and continue to grow our cold chain product and service offerings,” said a statement by the three Infitrak shareholders Jean Bedard, Karl Giamov and Ryan Sanders. “This will provide us with a great opportunity to expand our business into the US and other territories rapidly. We will continue to produce quality products and services to help customers with their regulatory cold chain needs.”
 
Going forward, Infitrak will continue its operations from the Markham facility, expanding its focus beyond Canada to the USA and other markets. The Infitrak management team will remain with the company, helping drive growth of the business.
 
“Cold-chain markets are expanding worldwide and we are excited about adding Infitrak’s offering to Mesa’s portfolio of products,” said Sullivan. “Infitrak’s strategy is unique in the industry, offering a complete suite of solutions, including cold-chain services, package assessment and design and real-time data monitoring. Infitrak’s business has been expanding rapidly in recent years and, by leveraging Mesa’s resources and contacts in the pharmaceutical industry, we are looking forward to continued rapid growth as we take their business model from Canada into the US market.”
 
Mesa is organised into four divisions across seven physical locations. Its instruments division designs, manufactures and markets control instruments and disposable products used in healthcare, pharmaceutical, food and beverage, medical device, industrial hygiene, environmental air sampling, and semiconductor industries.
 
The biological indicators division makes and markets biological indicators and distributes chemical indicators used to assess the effectiveness of sterilisation processes, including steam, hydrogen peroxide, ethylene oxide and radiation, in the hospital, dental, medical device and pharmaceutical industries.
 
The continuous monitoring division designs, develops and markets systems used to monitor environmental parameters such as temperature, humidity and differential pressure to ensure that critical storage and processing conditions are maintained in hospitals, pharmaceutical and medical device manufacturers, blood banks, pharmacies, and a number of other laboratory and industrial environments.
 
Finally, the cold-chain division provides parameter monitoring of products in a cold chain, consulting services such as compliance monitoring, packaging development and validation or mapping of transport and storage containers, and thermal packaging products such as coolers, boxes, insulation materials and phase-change products to control temperature during transport.