DiaSys Corporation Signs Agreement in Principle to Acquire Biocheck, Inc., and EverNew Biotech Inc.; Acquisitions Expected To Dramatically Increase Growth
DiaSys Corporation a global diagnostics products company, announced today that it has executed a letter of intent to acquire all of the outstanding capital stock of Biocheck, Inc. and EverNew Biotech, Inc., both headquartered in Foster City, California. Biocheck, Inc., develops, manufactures, and distributes immunodiagnostic test kits for the worldwide healthcare markets. Biocheck is currently working with leading-edge biopharmaceutical companies to take advantage of advances in genomics in order to develop novel test kits that improve earlier and accurate detection of diseases. EverNew Biotech, Inc., is a developer and manufacturer of diagnostic rapid tests for the worldwide healthcare market. Combined operations of the companies are rapidly growing and profitable. Sales have increased from $3.9 million in 2003 to $4.6 million in 2004.
“The strategic fit of Biocheck and EverNew’s research and development capabilities with DiaSys Corporation’s existing distribution network and the ability to sell complimentary products to each other’s existing client base will enable these companies to benefit immediately and in the long term,” said Morris Silverman, DiaSys Corporation’s Chairman.
“These potential acquisitions will enable DiaSys Corporation to advance its growth plan dramatically,” said Gregory Witchel, Chief Executive Officer of DiaSys Corporation. “The companies’ integration and our subsequent consolidations of existing operations will provide both short and long term value to our shareholders.”
DiaSys Corporation will enable Biocheck to further leverage its growth through its network of international distributors and to over 150 direct sales accounts in the United Kingdom through its wholly owned subsidiary, DiaSys Europe. Biocheck and EverNew Biotech will enable DiaSys to access their research and development expertise and enable DiaSys to sell its product line to Biocheck’s 300 direct accounts.
Biocheck, Inc., offers a broad range of products that include kits and materials used to diagnose a variety of medical conditions such as cancer, heart disease, infectious diseases, reproductive disorders and thyroid disorders. The company also provides a variety of services including custom immunoassay development, antibody conjugation and purification, and contract manufacturing. EverNew Biotech’s product focus is in Point of Care tests for Cardiac, Cancer Markers and other areas.
Biocheck manufactures according to U.S. Food and Drug Administration (FDA) Good Manufacturing Practice standards at its 15,000 square foot facility in Foster City California. EverNew Biotech is located within this facility.
The purchase price includes an equity component and cash payments, the amounts of which were not disclosed. Biocheck and EverNew Biotech’s management teams will remain in place after the transaction is completed. Completion of the transaction is subject to execution of a definitive purchase agreement, satisfactory due diligence, and other customary conditions. The transaction is expected to be completed within 90 days.
DiaSys Corporation designs, develops, manufactures and distributes proprietary medical laboratory equipment, consumables and infectious disease test kits to healthcare and veterinary laboratories worldwide. Headquartered in Waterbury, Connecticut, the Company operates in Europe through its wholly owned subsidiary based in Wokingham, England. DiaSys, Parasep and Urisep are registered trademarks of DiaSys Corporation.
