Lab21 acquires Biotec Laboratories

Lab21 has taken a majority shareholding in Biotec Laboratories, a clinical diagnostic company based in Ipswich, UK that specialises in infectious diseases, most notably tuberculosis (TB).

As part of the purchase, Lab21 has also acquired Biotec's South African subsidiary, Biotec Laboratories SA, a joint venture with the Cape Biotech Trust.

Graham Mullis, chief executive of Lab21, said: "Our goal is to grow Lab21 into a major international diagnostics business through both organic growth and acquisition - this transaction is an important step in that process."

The combined businesses, which have complementary products, provide a platform from which Lab21 can build its infectious disease and immunodiagnostic portfolio.

Biotec Laboratories is already selling some of Lab21 diagnostic products through its network of distributors in 80 countries worldwide. The acquisition will strengthen Lab21's global reach, in particular in Africa and South America.

The Johannesburg, South Africa offshoot has developed proprietary phage amplification technology that is being used to develop rapid diagnostic and susceptibility tests for both active and drug resistant TB.

Peter Ellis, chief executive of Biotec Laboratories said: "In order to be internationally competitive, the UK's diagnostics sector has long needed consolidation and we are delighted with the sale of our business to Lab21."

The financial terms of the deal were not disclosed and the transaction takes immediate effect. For the immediate future, Biotec Laboratories will continue to trade as a subsidiary of Lab21 group.