Bioanalytical Systems, doing business as Inotiv, announced the closing of the previously announced agreement to purchase substantially all of the assets of Pre-Clinical Research Services (PCRS). In connection with the closing, the Company also closed on additional funding, which positions the Company to make future investments in organic growth in the drug metabolism and pharmacokinetics arena.
The Company, which recently announced the rebranding of the Company’s contract research services business under the name Inotiv, closed on the PCRS business on December 1, 2019. In addition to the previously announced terms of the transaction, the Company purchased real property comprising the main facility, and additional property located next to the facility which can be available for future expansion, for the PCRS business for $2,500,000. In order to finance the transaction, as well as provide additional capital to fund growth efforts, the Company amended and restated its credit arrangements with First Internet Bank to, among other things, increase a current line of credit under the facility from $3.5 million to $5 million, to add a capital expenditure line of credit in the principal amount of $3 million, and to add two new term loans in the amounts of approximately $1.5 million and $1.9 million, respectively, the proceeds of which were used to fund a portion of the purchase price for the PCRS business and acquired real property. A Current Report on Form 8-K containing further details regarding the transaction and financing will be filed with the U.S. Securities & Exchange Commission.
“I am pleased to announce the completion of our strategic agreement with PCRS and the new funding for our DMPK business, as we wrap up an exciting year of growth and evolution as a Company,” said Robert Leasure, Jr., the Company’s President and Chief Executive Officer. “Becoming one with PCRS allows us to provide broader services by further expanding our toxicology business and allowing us to offer surgical services for pharmaceutical and medical device clients. We’re looking to the new year with optimism, as we continue to focus on providing our clients with the broad scope and right-sized solutions essential to their success, and an experience of high-touch care and collaboration.”
“We are very optimistic about the positive impact of joining Inotiv. This allows us the opportunity to provide more complete services to our clients, it creates opportunities for growth for our staff, and it provides a broader, more stable platform from which to operate,” Dr. Donald Maul, founder and president of PCRS, said. “Since announcing the agreement a few weeks ago, feedback from our clients has been overwhelmingly positive, which serves to validate our strategy.”