Biotage completes distribution restructuring

Sweden's Biotage, a specialist in microwave synthesis and chromatography systems for drug development and production, has taken some of its European distribution into its own hands through the purchase of Separtis Holding.

Biotage has bought Separtis, a Swiss, German and Austrian distributor of a number of its products, for €1.4 million in a move that completes its programme of consolidating its EU distribution channels and is a key part of integrating the assets acquired from Argonaut, a US supplier of separation, purification and analytical products, earlier this year.

Under the terms of the agreement Biotage will retain all current Separtis employees, assume the leased facilities in Grenzach-Wyhlen, and own all assets of Separtis, which is based in Grellingen, Switzerland with operating legal entities within Switzerland and Germany. The turnover of the company in 2004 was €1.6 million and all revenues were comprised of Biotage-produced products. It is expected the acquisition should result in an annual revenue increase of around €800,000 for the Swedish firm.

"It has always been within our plans to move from distributors to direct sales and service within our key European markets. This acquisition, in combination with other recent distributor changes in the EU, allows us to now service our critical markets directly while raising our operating margins," commented Jeff Bork, CEO of Biotage.

Dr Reinhard Kupferschmidt, currently senior sales manager and technical director of Separtis, will become the head of all Biotage business activities in Central and Eastern Europe. The existing Separtis business activities in Genzach-Wyhlen will continue as well.

"This substantially completes a crucial part of the Argonaut integration. For Biotage, it delivers critical skills and strong customer relationships in a vital EU region while providing the management talent necessary for our long term success," according to Dave Patteson, president of Biotage's discovery chemistry business.