Charles River Laboratories International announced that it has divested its Research Models and Services operations in Japan (RMS Japan) and its gene therapy CDMO site in Sweden (CDMO Sweden) in two separate transactions.
RMS Japan Divestiture
On October 12th, the Company completed the sale of its RMS Japan operations to The Jackson Laboratory (JAX) for approximately $63 million in cash, subject to customary closing adjustments.
The RMS Japan operations provide research models and associated services to support clients in the Japanese market. It has approximately 260 employees and generated annual revenue of $46 million in 2020. For more than 20 years, Charles River and JAX have had a distribution agreement for the production and sale of JAX’s research models in Japan. In connection with this transaction, JAX and Charles River have entered into a technology license agreement for JAX to produce and distribute Charles River’s research models in Japan. Charles River will continue to provide research models and services to global clients from its operations in North America, Europe, and China.
CDMO Sweden Divestiture
On October 12th, the Company completed the sale of its gene therapy CDMO site in Sweden to a private investor group for approximately $52 million in cash with potential contingent payments of up to an additional $25 million, subject to certain adjustments.
The CDMO Sweden site, which was acquired as part of the Cognate BioServices acquisition on March 29, 2021, produces plasmid DNA for use in gene therapies, as well as other CDMO inputs. It has approximately 130 employees and generated annual revenue of approximately $10 million in 2020. Charles River will continue to provide plasmid DNA, as well as its broader suite of cell and gene therapy CDMO services, to global clients from its operations in the United Kingdom and United States.
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