Swiss group Tecan to buy Paramit Corp for $1 billion

ZURICH, June 23 (Reuters) - Swiss laboratory instruments maker Tecan Group has agreed to buy U.S. medical devices and life sciences instruments group Paramit Corp for $1 billion, Tecan said on Wednesday.

The transaction, set to wrap up within months pending approvals, should add to earnings per share immediately upon closing, Tecan said.

Paramit was expected to generate around $280 million in 2021 sales and around $50 million in earnings before interest, tax, depreciation and amortisation (EBITDA) before acquisition-related costs.

Tecan said it would finance the deal with cash on hand and by issuing new shares and a bond. Credit Suisse had committed bridge financing for the deal.

“For the equity portion of the financing, Tecan intends to issue new shares from existing authorized share capital corresponding to less than 10% of its share capital,” it said.

It saw its debt leverage after the transaction at around 1.0 time net debt/EBITDA, adding it was set to decrease quickly thanks to cash generation by the combined entity.

Reporting by Michael Shields; Editing by Cynthia Osterman