Mesa Labs Acquires Dental Sterilizer Testing Business for $11.25M

Mesa Laboratories, Inc.

today announced the acquisition of substantially all of the assets (other than cash and certain fixed assets) and certain liabilities of the dental sterilizer testing business of North Bay Bioscience, LLC, a Michigan company ("NBBS"). The acquisition price for the NBBS business consisted of cash consideration of $11,250,000, subject to a minor working capital adjustment. The acquisition is expected to add approximately $4,000,000 to Mesa's revenues and to be accretive to our diluted net income per share during the first twelve months. The bulk of the NBBS business involves testing of small table-top sterilizers in the U.S. dental industry under CDC and State guidelines, which generally require that each sterilizer is tested weekly using biological indicators ("BI's"). In practice, for each sterilizer that a dental practice may have, NBBS delivers a kit that contains sufficient BI's for 52 weeks of testing. To conduct the test, the BI's are processed through the sterilizer in the dental office and then mailed back to NBBS for testing to determine if the sterilizer was working correctly. NBBS has created a service unique in the sterilizer testing business which tracks