- Analytical science and device company Trajan (TRJ) is set to acquire Chromatography Research Supplies (CRS) for US$43.3 million (A$61.6 million)
- CRS is a leading manufacturer of electronic and manual crimping tools, gas filters, ferrules and injection port septa
- The acquisition will provide Trajan with enhanced and extended production capabilities as well as expand its global infrastructure in the United States
- Trajan will fund the acquisition through a $29.7 million placement, an acquisition debt facility from HSBC for $20 million and $13.4 million from existing cash
- Shares in Trajan are steady on the market and were trading at $2.25 at 2:16 pm AEST
Analytical science and device company Trajan (TRJ) is set to acquire Chromatography Research Supplies (CRS) for US$43.3 million (A$61.6 million).
CRS is a leading manufacturer of electronic and manual crimping tools, gas filters, ferrules and injection port septa.
It has operated for more than 25 years with its products used in analytical laboratories amongst other industries.
The acquisition will provide Trajan with enhanced and extended production capabilities to service its gas chromatography business.
It will also expand Trajan’s global infrastructure in the United States.
The acquisition is expected to deliver revenue of US$14.1 million and earnings before interest, tax, depreciation and amortisation of US$4.2 million in FY22.
“The acquisition of CRS enhances multiple areas of our business and builds on our previous successful acquisitions to deliver comprehensive and best in class products in the analytical workflow,” Trajan Managing Director and Chief Technical Officer Stephen Tomisich commented.
“Our market leadership in gas chromatography is enhanced with the addition of septa and ferrules components, as well as introducing a broader portfolio of products in other areas of the analytical workflow that build on our automation business.”
Trajan will fund the acquisition through a $29.7 million placement, an acquisition debt facility from HSBC for $20 million and $13.4 million from existing cash.
Under the placement, roughly 14.8 million new shares will be issued to institutional, sophisticated and professional investors at a price of $2 per shares.
This price represents an 11.1 per cent discount to Trajan’s last closing price of $2.25 on June 16.
Trajan will also be offering eligible shareholders the ability to participate in a share purchase plan to raise up to a further $5 million.
Eligible shareholders will be able to apply for up to $30,000 worth of shares which will be priced the same as the placement of $2.
Trajan will use the money from the plan to support its growth through acquisitions as well as organic growth opportunities.
The share purchase plan will open on June 24 and close on July 12.
Shares in Trajan were steady on the market and were trading at $2.25 at 2:16 pm AEST.