Haemonetics Acquires SEBRA

Haemonetics Corporation (HAE - Analyst Report) has recently acquired the blood collection and processing business of Engineering and Research Associates Inc., commonly known as SEBRA. The transaction is worth $12.5 million in cash and is expected to be completed in a few months time. 

The SEBRA acquisition expands the vista of Haemonetics’ product offerings and increases its top-line. Furthermore, it strengthens the company’s position in the whole blood collection market. Haemonetics is developing an automated whole blood collection system and expects to launch it in late fiscal 2011. 

The SEBRA acquisition is expected to be neutral to Haemonetics’ earnings per share in fiscal 2010 and accretive thereafter. 

SEBRA markets a suite of products such as radio-frequency (RF) tube sealers, whole blood collection devices known as shakers, and mobile collection & ancillary equipment. These products are used in blood collection and processing. The company’s blood collection and processing business generated sales of $10 million in fiscal 2008 and has a 10-year compound annual growth rate of revenues greater than 9%. 

Haemonetics is the market leader in developing and manufacturing blood collection and processing technology. The company manufactures automated systems and single use consumables used in blood donation, blood processing and the surgical salvage of blood. 

Haemonetics operates in a very competitive environment, both for manual and automated systems, that includes larger and better capitalized companies such as Baxter International Inc. (BAX - Analyst Report), Abbott Laboratories (ABT - Analyst Report), and Medtronic Inc. (MDT - Analyst Report).

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