Mesa Labs Acquires Canada’s Infitrak Inc.

Jul 06, 2015

> LAKEWOOD, Colo., July 6, 2015 (GLOBE NEWSWIRE) -- Mesa Laboratories,
> Inc. (Nasdaq:MLAB) (we, us, our, "Mesa" or the "Company") today
> announced the acquisition of Infitrak Inc. and its holding company,
> 2396081 Ontario Inc. (collectively "Infitrak"), located near Toronto,
> in Markham, Ontario.
> Under the terms of the transaction, we acquired all of the outstanding
> shares of common stock of Infitrak, whose business involves providing
> consulting, packaging and measuring solutions for cold chain
> applications. The acquisition price for Infitrak consisted of cash
> consideration of $12,000,000 CDN (approximately $9,600,000 USD) which
> is subject to a minor working capital adjustment, and a future
> contingent payment of up to $15,000,000 CDN (approximately $12,000,000
> USD), based on the growth of Infitrak's cold chain business during the
> first two years following the acquisition. The acquisition of Infitrak
> is expected to add approximately $5,500,000 to Mesa's revenues and to
> be accretive to our diluted net income per share during the first
> twelve months.
> A "cold chain" is a supply chain for temperature sensitive substances
> involving an uninterrupted series of storage and distribution
> activities which maintain a given temperature range from point of
> manufacture or collection to point of use. Cold chains are primarily
> used within the pharmaceutical, healthcare, and food industries,
> although there are some smaller markets in other industries. Infitrak's
> product offerings consist of:
> -- Consulting services such as compliance monitoring, packaging development
> and validation or mapping of transport and storage containers.
> -- Thermal packaging products such as coolers, boxes, insulation materials
> and phase-change products to control temperature during transport.
> -- Parameter monitoring (primarily temperature) of products in a cold chain
> using data loggers and other indicators.
> -- Data management and software which provide documentation and alerts.
> Going forward, Infitrak will continue its operations from the Markham
> facility, expanding its focus beyond Canada to the U.S and other
> markets. The Infitrak management team will remain with the Company,
> helping to drive growth of the business.
> "Cold chain markets are expanding worldwide and we are excited about
> adding Infitrak's offering to Mesa's portfolio of products," said John
> J. Sullivan, President and CEO of Mesa. "Infitrak's strategy is unique
> in the industry, offering a complete suite of solutions, including cold
> chain services, package assessment and design and real time data
> monitoring. Infitrak's business has been expanding rapidly in recent
> years and, by leveraging Mesa's resources and contacts in the
> pharmaceutical industry, we are looking forward to continued rapid
> growth as we take their business model from Canada into the U.S.
> market. Cold chain products fit very well with Mesa's market focus, as
> they are used mainly in regulated markets for maintaining quality
> products, and they complement our DataTrace and Continuous Monitoring
> product lines. I look forward to working with the entire Infitrak team
> as we execute our strategy to grow the business in the U.S. and
> beyond."
> "We are thrilled to join a quality organization like Mesa and continue
> to grow our cold chain product and service offerings," commented the
> three shareholders Jean Bedard, Karl Giamov and Ryan Sanders. "This
> will provide us with a great opportunity to expand our business into
> the U.S. and other territories rapidly. We will continue to produce
> quality products and services to help customers with their regulatory
> cold chain needs."