Pharmaceutical Business review

Spectris acquires Concept Life Sciences for £163m

Concept represents a new, high-growth area for Spectris, and will become a separate operating company within its Materials Analysis segment where it has strong synergies with the activities of Malvern Panalytical.

As a result of the acquisition, Concept’s customers will benefit from access to Malvern Panalytical’s expertise in molecular testing and analysis. In the medium term, Concept’s in-depth scientific offering, customer knowledge and application insights, combined with Malvern Panalytical’s deep domain knowledge and broad reach, will enable increased innovation across the combined group.

Concept has achieved significant growth over the period 2015-2017, driven both organically and through M&A activity. The recent acquisition of Aquila Biomedical, an immunotherapy business, significantly added to the Company’s reach in integrated drug discovery and development services. Additionally, Concept expanded its capacity in August 2017 by opening new laboratories at the international science hub Alderley Park.

Spectris reported 2016 revenue of £1,346m, with operating profit of £201m and has low debt. Under its new ownership, Concept will benefit from the expertise, resources and international reach of the Spectris group. Being part of a large, global organisation will help Concept Life Science’s growth with international customers and expansion into new markets, both organically and via potential acquisitions. The current Management team, led by Michael Fort, will continue to run the business. The company will maintain a ‘business as usual’ policy through the integration process.

Concept Life Sciences executive chairman Michael Fort said: “Concept was positioning for a sale in late 2018/early 2019, and we are therefore delighted that our success has been recognised by Spectris, leading to an earlier than planned acquisition.

“The global footprint of Spectris along with their expertise in complementary activities and experienced management team offers the infrastructure to support Concept’s ambitions for international growth. We are very excited to begin working together.”

Spectris CEO John O’Higgins said: “Concept is a high-quality services business, which further strengthens our portfolio and enhances our ability to provide customers within the pharmaceutical, life sciences and advanced materials sectors with a combined product and service proposition.

“The Spectris executive team is excited to work with Michael and the team in order to deliver on the opportunities that both groups see.”