US-based Life Technologies is buying a stake in its local distributor Labindia Instruments Pvt Ltd for an undisclosed amount through its wholly-owned Indian subsidiary Invitrogen BioServices India Pvt Ltd.
The deal will allow Life Technologies to offer complete and complementary products directly to its customers in India. The acquisition in India is part of its strategy to integrate its operations globally. It also plans to acquire more companies to grow its business in India. As part of the deal, around 100 employees of Labindia will join Life Technologies, creating a 200-person organisation with operations throughout India.
The transaction is being routed through Invitrogen BioServices India, the wholly-owned Indian subsidiary of Labindia Instruments Pvt Ltd that sells reagents to hospitals, drugmakers, clinical research organisations and government institutes, among others.
Labindia is engaged in marketing and manufacturing of various analytical instruments, accessories and other products that are used by the chemical, pharmaceutical, petrochemicals and biotechnology industries as well as for basic research in academic and government laboratories. According to industry estimates, LabIndia’s business that is being acquired by Life Technologies has annual sales of over $20 million.In India, Invitrogen BioServices mainly sells reagents. The market for such reagents and kits in India is growing at a double-digit rate, making it one of the fastest growing regions in Asia Pacific. This transaction creates a full service business, allowing the company to provide its applied bio-systems products directly to customers along with its Invitrogen portfolio.
The $3.3bn Life Technologies, which employs around 9,000 people globally, was formed with the acquisition of Applied Biosystems Group by Invitrogen Corporation in 2008, in a cash and stock transaction valued at $6.7bn.
The cross border India based M&A Activities have seen a dramatic rise in the recent years. These acquisitions not only facilitate the technology transfer but also provide an opportunity for entry into high growth markets. India looks well set to leverage this advantage.