Charles River Buys Contract Vivarium Research Services Firm In $295M Deal

Charles River Laboratories International Inc (NYSE:CRL) has acquired Explora BioLabs Holdings Inc, a provider of contract vivarium research services, for $295 million.

• California-based Explora BioLabs operates more than 15 preclinical vivarium facilities, offering turnkey rental space in Southern California, San Francisco, and Boston-Cambridge biohubs, with a planned expansion in Seattle in 2022. 
• With over 100 employees, it also offers contract vivarium management, staffing, and regulatory solutions to manage clients' research sites.
• The acquisition of Explora BioLabs complements and expands the Charles River Accelerator and Development Lab (CRADL) operation, which is part of Charles River's Insourcing Solutions business. 
• CRADL provides full-service, turnkey vivarium rental space.
• Read Next: Charles River's Q4 Earnings Beats Street Expectation, Reaffirms FY22 Outlook.
• The combined Explora BioLabs and CRADL operation will include at least 25 vivarium facilities by 2022, providing over 300,000 square feet of turnkey rental capacity.
• Explora BioLabs has become part of the company's Research Models and Services segment.
• Explora BioLabs had annual revenue of approximately $38 million in 2021.
• Charles River expects the transaction to be slightly accretive to non-GAAP EPS beginning in 2023.
• The company held cash and equivalents of $246.3 million as of December 25, 2021.
• Price Action: CRL shares are down 1.87% at $283.25 during the market session on the last check Wednesday.