Charles River Laboratories acquires Oncotest GmbH

Charles River Laboratories International, Inc has acquired Oncotest GmbH, a Freiburg, Germany-based contract research organisation providing discovery services for oncology, one of the largest therapeutic areas for biopharmaceutical research and development spending. Oncotest offers an integrated portfolio of target discovery and validation services for preclinical oncology researchers. The company specialises in in vivo pharmacology services, leveraging an extensive collection of more than 400 patient-derived xenograft (PDX) tumor models, as well as a full range of in vitro assays using both commercially available and proprietary PDX-derived cell lines.
The purchase price was approximately €34 million in cash (approximately $36 million based on current exchange rates), subject to certain post-closing adjustments. In addition to the initial purchase price, the transaction includes a potential additional payment of €2 million based on future performance (approximately $2 million based on current exchange rates). The purchase price implies a multiple of approximately 11x adjusted EBITDA based on the trailing twelve months ended September 2015.