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VWR Corp Continues its Acquisition Spree with MESM Buyout

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VWR Corporation has been on an acquisition spree lately. Post the company’s buyout of international biorepository services organization, EPL Archives last month, this global provider of products, services and solutions to laboratory and production facilities made another strategic acquisition.

VWR recently acquired a global provider of laboratory and medical equipment and ancillary supplies to clinical trials, MESM Ltd. However, like EPL Archives, the financial terms of this deal has been kept under wraps.

Notably, MESM’s services include equipment sourcing, technical advice and product training, logistics services including import/export compliance, pre-shipment configuration and calibration, in-study equipment servicing and technical support and end-of-study equipment reporting, decommissioning and removal.

MESM is widely recognized for its ability to source and supply both standard and non-standard products. The company has been observed to consistently meet customers’ needs in large complex global studies in a timely manner and with excellence in equipment supply.

According to VWR, MESM will complement its growing service offering as part of VWRCATALYST. This will help VWR provide end-to-end product and supply chain solutions to its customer in a more efficient manner.

In this regard we note that, VWR offers its customers an increasing array of value-added services marketed under the VWRCATALYST brand, allowing them to continue outsourcing non-core functions instead of focusing on their own competitive imperatives. Moving forward, the company plans to take necessary steps to continue enhancing customer intimacy, leverage the relative strength of supplier base and increase the use of unique IT capabilities.

The company has successfully maintained a diverse and stable customer base. It centrally manages and actively collaborates with its largest global customers and provides them value-added services, optimizes the efficiency of their research, production and procurement activities. It also provides dedicated on-site professionals and technicians. Additionally, it manages relationships with regional customers on a local basis, with focus on particular customer segment-specific needs. The latest acquisitions of MESM and EPL Archives are expected to help the company improve its standards of customer service.

Over the last one month, VWR traded above the Zacks categorized Medical - Dental Supplies industry. Per the last share price movement, overall the company gained 0.76%, as against the 0.94% decline of the broader industry, over this period.

Zacks Rank & Key Picks

VWR currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader Medical space include Inogen, Inc. (INGN - Free Report) , Orasure Technologies, Inc. (OSUR - Free Report) and Hill-Rom Holdings, Inc. . While Inogen sports a Zacks Rank #1 (Strong Buy), Orasure and Hill-Rom carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Inogen gained 62.2% in the last one year compared with the S&P 500’s gain of 15.1%. The company reported a stellar four-quarter positive average earnings surprise of over 49.08%.

Orasure surged 73.9% in the last one year compared with the S&P 500’s gain. Its four-quarter average earnings surprise was a positive 123.5%.

Hill-Rom gained over 33.9% in the past one year, better than the S&P 500 mark. It posted a trailing four-quarter positive average earnings surprise of 12.03%.

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