Mesa Labs Acquires The Bios International Flow Calibrator Business for $16.66M

Mesa Laboratories, Inc. MLAB today announced the acquisition of the flow calibrator business of Bios International Corporation, a New Jersey company. Under the terms of the transaction, Mesa Labs has acquired essentially all of the assets of Bios' business involving the design, manufacturing, sales and service of gas flow calibration instrumentation. The flow calibrator business was acquired by Mesa for an initial payment of $16.66 million in cash, plus a possible future payment of up to $6.71 million in cash, dependant on the growth rate of the business during the first three years following the acquisition. In the 12-month period ended April 30, 2012, the flow calibrator business of Bios had unaudited revenues of approximately $6.7 million. Due to excellent profit margins and a favorable tax treatment of this asset deal, the addition of the flow calibrator business is expected to increase Mesa's cash flow significantly and be accretive to Mesa's GAAP earnings per share beginning in the current fiscal year, ending March 31, 2013.