Nov 13 2009
Additionally, Acquires Gammadata Mattenknik AB to Increase Global Radon Measurement Capability
Landauer, Inc. (NYSE: LDR), a recognized leader in personal and environmental radiation monitoring services, today announced the completion of two acquisitions in accordance with its long-term strategic priorities.
"We are pleased to announce the acquisitions of Global Physics Solutions, Inc. (GPS) and Gammadata Mattenknik AB (GDM)," said Bill Saxelby, President and CEO of Landauer. "These acquisitions position Landauer to execute on our long-term strategic priorities to drive competitive growth and pursue strategic expansion. These high quality companies complement Landauer's competencies and the financial characteristics of our core business while providing entrance into new market segments."
Global Physics Solutions, Inc. (GPS)
The acquisition of Global Physics Solutions, Inc. (GPS), completed on November 9, 2009, for $22 million in cash, initiates Landauer's strategic expansion through the extension of services to ensure the safe utilization of radiation in the healthcare setting.
Based in Texas with operations throughout the Midwest, GPS is the leading nationwide provider of Medical Physics Services to hospitals and radiation therapy centers. Medical Physics Services is estimated to be a $1 billion domestic market that includes clinical physics support, equipment commissioning, accreditation support, imaging equipment testing and educational services. Medical physicists provide clinical and operational support in the safe application of radiation for diagnosis and treatment of patients.
Saxelby explained, "As we look to expand the scope of our core occupational health monitoring business, the Medical Physics Services sector is attractive to us because it is a service model that complements our core business focus of radiation safety and exhibits attractive growth characteristics. Global Physics Solutions is healthcare focused with the same customers as Landauer, has regulatory support, and has a recurring revenue model with high return characteristics. This large and expanding market opportunity provides us with a substantial growth platform and the current market is highly fragmented with no one company controlling more than two percent of the market."
"The GPS leadership team is excited to join Landauer," noted Len Wright, President and CEO of GPS. "Landauer's leadership in radiation safety, combined with our leadership in medical physics will provide a compelling service offering to our shared customers."
Saxelby added, "We chose GPS not only because they are the largest company in the market, but they are also recognized as thought leaders in the industry and have been able to attract expert medical physicists and a blue chip customer base. This move expands our leadership in the radiation science and services arena and helps us better address the desire of the medical community to understand the impact of increased utilization of radiation in medical procedures on patient safety."
Landauer acquired GPS from DW Healthcare Partners, a leading private equity firm focused exclusively on the healthcare industry. Robert W. Baird & Co acted as financial advisors to Landauer on this transaction.
Gammadata Matteknik AB (GDM)
The acquisition of Gammadata Matteknik AB (GDM) completed on November 2, 2009, for $6.7 million in cash, aligns with the company's competitive growth objective through expansion of the company's international platform with the leading European provider of radon measurement services. Radon is a naturally occurring radioactive gas that can lead to the increased risk of lung cancer. The World Health Organization recently recommended that countries lower radon levels to control the presence of radon in homes and commercial settings.
GDM has operations outside of Stockholm Sweden and provides measurement services primarily in the Scandinavian region and throughout Europe. This transaction will leverage the Company's recent acquisition of the Studsvik dosimetry service in Sweden, now called Landauer Persondosimetri AB.
"The stability of our core businesses and strong cash flow we generate is enabling us to execute on our three strategic growth priorities as planned," explained Jonathon Singer, Chief Financial Office of Landauer, Inc. "We remain committed to approaching any strategic expansion opportunities in a thoughtful and measured manner, and are confident that we will be able to build upon our success in the coming years."