Trajan (ASX:TRJ) to acquire Chromatography Research Supplies

Company News

by Lauren Evans

Trajan (ASX:TRJ) is set to acquire Chromatography Research Supplies (CRS), a manufacturer of analytical consumables based in the US for $61.9 million (US$43.3 million).

The analytical science and device company said the acquisition provides extended production capabilities to service its gas chromatography business. Trajan also said the purchase strengthens its product portfolio particularly in the gas chromatography inlet and sample introduction, which supports two product lines - septa and ferrules.

CRS has been a long term supplier of consumables to Trajan since Trajan's acquisition of SGE Analytical in 2013. 

“The acquisition of CRS enhances multiple areas of our business and builds on our previous successful acquisitions to deliver comprehensive and best in class products in the analytical workflow," said chief executive officer Stephen Tomisich.

“Our market leadership in gas chromatography is enhanced with the addition of septa and ferrules components, as well as introducing a broader portfolio of products in other areas of the analytical workflow that build on our automation business.”

The company will fund the acquisition via a $29.7 million placement to institutional investors, an acquisition debt facility from HSBC of $20 million and $13.4 million from existing cash.

The placement will issue around $14.8 million new shares at $2 per new share, which represents an 11.1 per cent discount to the last closing price of $2.25 yesterday.

Trajan will also offer eligible shareholders in Australia and New Zealand the opportunity to participate in a non-underwritten share purchase plan.

Shares will be placed in a trading halt, and last traded at $2.25 yesterday. 

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