STANDEX ACQUIRES CUSTOM BIOGENIC SYSTEMS

Rhea-AI Summary

Standex International (NYSE:SXI) has acquired Michigan-based Custom Biogenic Systems (CBS) for $6.2 million in cash, financed from existing cash balance. CBS, a leader in cryogenic equipment manufacturing with estimated $15 million in revenues for 2024, will be integrated into Standex's Scientific business segment. The acquisition expands Standex's scientific refrigeration business into liquid nitrogen and controlled rate freezer markets. CBS specializes in developing advanced cryogenic equipment with dry liquid nitrogen technology for pharmaceutical and biobank markets. The acquisition is expected to be earnings accretive in the first year.

Positive

• All-cash acquisition of $6.2 million funded from existing cash balance
• Expected to be earnings accretive in first year
• Target company has estimated revenues of $15 million in 2024
• Expands addressable market in scientific refrigeration segment
• Adds new capabilities in liquid nitrogen and controlled rate freezer markets

Negative

• None.

SALEM, N.H., Nov. 14, 2024 /PRNewswire/ -- Standex International Corporation (NYSE:SXI) today announced that it has acquired Michigan-based Custom Biogenic Systems ("CBS") for approximately $6.2 million in cash. The transaction is being financed from Standex's existing cash balance. In its first year of ownership, the Company expects the acquisition to be accretive to its earnings. CBS will be reported as part of Standex's Scientific business segment.

"We are pleased to have acquired Custom Biogenic Systems, extending the reach of our scientific refrigeration business with a presence within the liquid nitrogen and controlled rate freezer markets and expanding our North American manufacturing capabilities. The business aligns with our customer intimacy approach and is highly complementary to our existing business," commented President and Chief Executive Officer David Dunbar.

Founded in 1987, Custom Biogenic Systems is a leader in the design and manufacturing of laboratory products and supplies. CBS specializes in the development and manufacturing of advanced cryogenic equipment, including unique Isothermal freezers with dry liquid nitrogen technology, to the pharmaceutical and biobank end markets within life sciences. In calendar year 2024, Custom Biogenic Systems estimates revenues of approximately $15 million.

"With today's announcement, we have expanded our addressable market within our Scientific business with the addition of a brand leader in cryogenic storage, with over thirty years of industry experience. Considering its adjacent scientific product offering, complementary nature to our existing products, and its engineering and manufacturing capabilities, we are excited about our long-term combined potential together. We look forward to welcoming the entire CBS team to our company," concluded Dunbar.

About Standex

Standex International Corporation is a global multi-industry manufacturer in five broad business segments: Electronics, Engraving, Scientific, Engineering Technologies, and Specialty Solutions with operations in the United States, Europe, Canada, Japan, Singapore, Mexico, Turkey, India, and China.  For additional information, visit the Company's website standex.com.

About Custom Biogenic Systems

Headquartered in Bruce Township, Michigan, Custom Biogenic Systems designs and manufactures laboratory products and supplies, which include cryogenic freezers, isothermal freezers and controlled rate freezers. For additional information, visit the Company's website at http://www.custombiogenics.com.

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SOURCE Standex International Corporation

FAQ

How much did Standex (SXI) pay for Custom Biogenic Systems?

Standex paid approximately $6.2 million in cash for Custom Biogenic Systems, using its existing cash balance.

What is Custom Biogenic Systems' estimated revenue for 2024?

Custom Biogenic Systems estimates revenues of approximately $15 million for calendar year 2024.

Will the CBS acquisition be accretive to Standex's (SXI) earnings?

Yes, Standex expects the acquisition to be accretive to its earnings in the first year of ownership.

Which Standex segment will Custom Biogenic Systems be part of?

Custom Biogenic Systems will be reported as part of Standex's Scientific business segment.